Technology Gaps, Trade, and Income

Thomas Sampson

American Economic Review, 2023, vol. 113, issue 2, 472-513

Abstract: This paper quantifies the contribution of technology gaps to international income inequality. I develop an endogenous growth model where cross-country differences in R&D efficiency and cross-industry differences in innovation and adoption opportunities together determine equilibrium technology gaps, trade patterns, and income inequality. Countries with higher R&D efficiency are richer and have comparative advantage in more innovation-dependent industries. I calibrate R&D efficiency by country and innovation dependence by industry using R&D, patent, and bilateral trade data. Counterfactual analysis implies technology gaps account for one-quarter to one-third of nominal wage variation within the OECD.

JEL-codes: D21 D24 D31 F14 O31 O33 O47 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (5)

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Related works:
Working Paper: Technology gaps, trade and income (2023)
Working Paper: Technology gaps, trade and income (2019)
Working Paper: Technology Gaps, Trade and Income (2019)
Working Paper: Technology Gaps, Trade and Income (2019)
Working Paper: Technology gaps, trade and income (2019)
Working Paper: Technology gaps, trade and income (2019)
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DOI: 10.1257/aer.20201940

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