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International trade and uneven growth: a model with intersectoral spillovers of knowledge


  • Marina Murat
  • Francesco Pigliaru


We analyse a world economy composed of a continuum of small countries producing two final goods, the learning-by-doing potentials of which differ significantly. In autarky, the knowledge accumulated in the high-learning sector spills over into the low-learning one. A steady-state equilibrium common to all countries exists, in which both goods are produced. The steady-state growth rate is higher the larger is the relative share of the leading sector in the economy. Trade leads to complete specialization. In the absence of international spillovers, the growth rates of the trading countries diverge according to their comparative advantage. Both dynamic gains and losses from trade may be present. Further, we explore the possibility of international transmission of knowledge. The latter generates convergence of long-run growth rates across countries, with the duration of such a convergence being a decreasing function of the intensity of the international spillovers.

Suggested Citation

  • Marina Murat & Francesco Pigliaru, 1998. "International trade and uneven growth: a model with intersectoral spillovers of knowledge," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 7(2), pages 221-236.
  • Handle: RePEc:taf:jitecd:v:7:y:1998:i:2:p:221-236 DOI: 10.1080/09638199800000012

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    References listed on IDEAS

    1. O. Galor & H. M. Polemarchakis, 1987. "Intertemporal Equilibrium and the Transfer Paradox," Review of Economic Studies, Oxford University Press, vol. 54(1), pages 147-156.
    2. Chichilnisky, Graciela, 1980. "Basic goods, the effects of commodity transfers and the international economic order," Journal of Development Economics, Elsevier, vol. 7(4), pages 505-519, December.
    3. Haaparanta, Pertti, 1989. "The intertemporal effects of international transfers," Journal of International Economics, Elsevier, vol. 26(3-4), pages 371-382, May.
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    Cited by:

    1. Rinaldo Brau & Alessandro Lanza & Francesco Pigliaru, 2003. "How Fast are the Tourism Countries Growing? The cross-country evidence," Working Papers 2003.85, Fondazione Eni Enrico Mattei.
    2. Hübler, Michael & Pothen, Frank, 2017. "Trade-induced productivity gains reduce incentives to impose strategic tariffs," Economic Modelling, Elsevier, vol. 61(C), pages 420-431.
    3. Wang, Ming-cheng & Fang, Chen-ray & Huang, Li-hsuan, 2009. "International knowledge spillovers and wage inequality in developing countries," Economic Modelling, Elsevier, vol. 26(6), pages 1208-1214, November.
    4. Francesco Pigliaru & Alessandro Lanza, 2003. "How fast are the tourism countries growing? The international evidence, 1980-95," ERSA conference papers ersa03p234, European Regional Science Association.
    5. Maria Sassi, 2007. "Agriculture and structural change: economic convergence among European regions," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 2, May.
    6. Fabio Cerina & Francesco Pigliaru, 2007. "Agglomeration and Growth in the NEG: A Critical Assessment," Chapters,in: New Directions in Economic Geography, chapter 5 Edward Elgar Publishing.
    7. R. Brau & A. Lanza & F. Pigliaru, 2003. "How fast are tourism countries growing? The cross country evidence," Working Paper CRENoS 200309, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    8. A. Lanza & F. Pigliaru, 1999. "Why Are Tourism Countries Small and Fast-Growing?," Working Paper CRENoS 199906, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.


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