 Learning to Learn: The Role of Imitation and Trade inTechnological DiffusionMichelle P. Connolly No 97-25, Working Papers from Duke University, Department of Economics Abstract: An endogenous growth model is developed demonstrating both static and dynamic gains from trade for developing nations due to the beneficial effects of trade on imitation and technological diffusion. The concept of learning-to-learn in both imitative and innovative processes is incorporated into a quality-ladder model with North-South trade. Domestic technological progress occurs via innovation or imitation, while growth is driven by technological advances in the quality of domestically available inputs, regardless of country of origin. In the absence of trade, Southern imitation of Northern technology leads to asymptotic conditional convergence between the two countries, demonstrating the positive effect of imitation on Southern growth. Free trade generally results in a positive feedback effect between Southern imitation and Northern innovation yielding a higher common steady-state growth rate. Immediate conditional convergence occurs. Thus, trade in this model confers dynamic as well as static ben efits to the less developed South, even when specializing in imitative processes. JEL-codes: F1 F43 O14 O30 O31 O34 O40 (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:duk:dukeec:97-25 Access Statistics for this paper More papers in Working Papers from Duke University, Department of Economics Department of Economics Duke University 213 Social Sciences Building Box 90097 Durham, NC 27708-0097. |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.