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Gains and Losses from International Trade in a Knowledge-driven Semi-endogenous Growth Model with Heterogeneous Firms

  • katsufumi, fukuda
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    We consider a semi endogenous R&D growth model with international trade, firm heterogeneity, and local knowledge spillover in a closed economy and international knowledge spillover in a symmetric two country economy. We show that by opening trade R&D difficulty (the number of varieties produced) and welfare are ambiguously affected. When the international spillover is large (small), the former is increased (decreased). When the size of the international knowledge spillover is large (small) or the size of the international knowledge spillover is small and the size of intertemporal knowledge spillover is small (large), the latter increases (decreses). Without intertemporal and international knowledge spillovers, welfare increases.

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    File URL: http://mpra.ub.uni-muenchen.de/40818/1/MPRA_paper_40818.pdf
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    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 40818.

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    Date of creation: 21 Aug 2012
    Date of revision: 22 Aug 2012
    Handle: RePEc:pra:mprapa:40818
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    1. Richard E. Baldwin & Frédéric Robert-Nicoud, 2006. "Trade and Growth with Heterogeneous Firms," CEP Discussion Papers dp0727, Centre for Economic Performance, LSE.
    2. Bulent Unel, . "Technology Diffusion through Trade with Heterogeneous Firms," Departmental Working Papers 2006-15, Department of Economics, Louisiana State University.
    3. Gustafsson, Peter & Segerstrom, Paul, 2006. "Trade Liberalization and Productivity Growth," CEPR Discussion Papers 5894, C.E.P.R. Discussion Papers.
    4. Bulent Unel & Elias Dinopoulos, . "Quality Heterogeneity and Global Economic Growth," Departmental Working Papers 2009-06, Department of Economics, Louisiana State University.
    5. Segerstrom, Paul S, 1998. "Endogenous Growth without Scale Effects," American Economic Review, American Economic Association, vol. 88(5), pages 1290-1310, December.
    6. Elias Dinopoulos & Constantinos Syropoulos, 2007. "Rent Protection as a Barrier to Innovation and Growth," Economic Theory, Springer, vol. 32(2), pages 309-332, August.
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