Technological Mismatch: a Model of Internatioal Trade in Goods and Ideas

Thomas Chaney

No 36, 2009 Meeting Papers from Society for Economic Dynamics

Abstract: I build a model of trade and technology diffusion. The novelty of the model is to separate technology into two different pieces: the technology itself, and the implementation of this technology by a worker. Technological mismatch occurs when an idea is developed in a country but implemented in another country. In contrast with existing models of trade and technology diffusion where diffusion is typically a substitute for trade, I predict that diffusion may enhance trade. Moreover, opening up an international market for ideas increases long term growth, as it reduces the likelihood that ideas are mismatched.

Date: 2009
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Persistent link: https://EconPapers.repec.org/RePEc:red:sed009:36

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