Trade in Capital Goods

Jonathan Eaton () and Samuel Kortum ()

No 8070, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Innovative activity is highly concentrated in a handful of advanced countries. These same countries are also the major exporters of capital goods to the rest of the world. We develop a model of trade in capital goods to assess its role spreading the benefits of technological advances. Applying the model to data on production and bilateral trade in capital equipment, we estimate the barriers to trade in equipment. These estimates imply substantial differences in equipment prices across countries. We attribute about 25 percent of cross-country productivity differences to variation in the relative price of equipment, about half of which we ascribe to barriers to trade in equipment.

JEL-codes: F43 F21 (search for similar items in EconPapers)
Date: 2001-01
Note: ITI
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Related works:
Working Paper: Trade in Capital Goods (2000)
Working Paper: Trade in Capital Goods (2004)
Journal Article: Trade in capital goods (2001)
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