International Trade, Technology Transfer, Growth, and Welfare in a Schumpeterian Model of Endogenous Growth

Tae-Hyung Kim

Review of International Economics, 1999, vol. 7, issue 1, 37-49

Abstract: This paper provides a simple analysis of the role of international technology transfer in the determination of the long-run pattern of trade, growth, and welfare in a two-country world within an endogenous growth framework. It is shown how the possibility and form of technology transfer impinge upon the long-run pattern of trade and therefore long-run growth rates and welfare. The most interesting finding of this paper is that, under certain conditions, there is a case in which restricted trade is growth- and welfare-enhancing compared with free trade. Copyright 1999 by Blackwell Publishing Ltd.

Date: 1999
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