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Endogenous Growth and International Technology Diffusion

Author

Listed:
  • Michael Waugh

    (New York University)

  • Christopher Tonetti

    (New York University)

  • Jesse Perla

    (NYU)

Abstract

This paper studies international technology and idea flows and their effects on growth and the welfare gains from openness. We analyze a model where producers decide either to acquire productivity-increasing ideas through search or to produce domestically and potentially for export with their existing productivity. These choices (both domestically and abroad) jointly determine the distribution of productivity-increasing ideas availablewhich in turn affect search and exporting decisions. We characterize the balance growth path and transition dynamics for this economy, thereby allowing us to provide a theory as to how openness changes technology/idea adoption, growth, and the welfare gains from openness.

Suggested Citation

  • Michael Waugh & Christopher Tonetti & Jesse Perla, 2012. "Endogenous Growth and International Technology Diffusion," 2012 Meeting Papers 1005, Society for Economic Dynamics.
  • Handle: RePEc:red:sed012:1005
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