Trade Induced Technical Bias and Wage Inequalities: A Theory of Defensive Innovation
This paper considers a dynamic North South model of international trade and innovations in which firms can endogenously bias the direction of technological change. We show that, when there is a differential degree of protection of property rights between the two regions, innovating firms face a trade off between delocalization in South and more secure property rights in North.
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|Date of creation:||01 Aug 2000|
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