Domestic Innovation and International Technology Diffusion as Sources of Comparative Advantage
Ana Maria Santacreu and
Review, 2018, vol. 100, issue 4
Productivity differences across countries determine patterns of international trade?hence, comparative advantage. We use a multi-industry model of international trade to estimate a measure of industry productivity. We then quantify the effect that domestic innovation and technology diffusion have in explaining differences in productivity across countries and industries. Consistent with standard growth theories, we find the following: (i) Higher-income countries benefit more from domestic innovation than lower-income countries, whereas lower-income countries benefit more from technology diffusion; and (ii) the speed of convergence is larger for those countries and industries that are farther away from the technology frontier. To the extent that productivity differences determine comparative advantage, our findings suggest that domestic innovation and technology diffusion are endogenous sources of comparative advantage.
JEL-codes: F12 O33 O41 O47 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
https://files.stlouisfed.org/files/htdocs/publicat ... rative-advantage.pdf Full text (application/pdf)
https://doi.org/10.20955/r.100.317-36 https://doi.org/10.20955/r.100.317-36 (text/html)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:fip:fedlrv:00108
Ordering information: This journal article can be ordered from
Access Statistics for this article
Review is currently edited by Carlos Garriga
More articles in Review from Federal Reserve Bank of St. Louis Contact information at EDIRC.
Bibliographic data for series maintained by ().