The creative response and international trade11The comments of the anonymous referees and the editor are gratefully acknowledged. The funding of my Department are acknowledged

Cristiano Antonelli

Structural Change and Economic Dynamics, 2019, vol. 51, issue C, 445-452

Abstract: In the standard Hecksher-Ohlin (HO) model, the specialization of countries is exogenous and static. This work elaborates the hypothesis that the specialization of countries is the endogenous outcome of the creative response of firms caught in out-of-equilibrium conditions by the changing conditions of factor and product markets. It presents three models. In the basic Schumpeter-Hecksher-Ohlin (SHO) model, countries try and react by means of the introduction of technological change to increase their productivity levels and to contrast the wage reducing effects of the factor cost equalization. The extended SHO models show how i) countries can react with the selective introduction in their specialized sector of activity of new technologies localized by the pervasive role of learning and ii) identify technological knowledge as the locally most abundant and idiosyncratic input so as to direct the introduction of knowledge intensive technological change.

Keywords: Hecksher-Ohlin; Creative response; Technological knowledge; Directed technological change; Technological congruence; Endogenous specialization (search for similar items in EconPapers)
JEL-codes: F12 F43 O33 (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:eee:streco:v:51:y:2019:i:c:p:445-452

DOI: 10.1016/j.strueco.2019.03.002

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