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International production, technology diffusion, and trade

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  • Shikher, Serge

Abstract

The paper develops a general equilibrium model of international production and trade. Technology is carried across borders by multinational producers and the set of technologies being used in a particular country is endogenous. Production locations are chosen based on the costs of production and getting the product to market. The model incorporates vertical, horizontal, offshoring, and export-platform FDI. Estimated model parameters describe the states of technology in different countries, barriers to international investment, and trade costs. The model is used to quantify the welfare effects of international production and trade and to investigate the effects of free-trade agreements on offshoring.

Suggested Citation

  • Shikher, Serge, 2009. "International production, technology diffusion, and trade," MPRA Paper 21005, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:21005
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    References listed on IDEAS

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    Cited by:

    1. Ozlem Yaylaci, 2012. "Evolution of Trade Costs," EcoMod2012 4267, EcoMod.

    More about this item

    Keywords

    international trade; international production; technology diffusion; foreign direct investment; barriers to trade; barriers to investment; heterogeneous producers;

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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