Dynamics of General Purpose Technologies in an Open Economy

Jaiho Chung and Joon Ho Hwang

Hitotsubashi Journal of Economics, 2009, vol. 50, issue 2, 87-98

Abstract: While the Helpman-Trajtenberg model is successful in explaining the macroeconomic cycle generated by GPT in the context of a closed economy, open-economy implications regarding GPT have received scant attention. We seek to fill such void in the previous literature by developing a dynamic North-South trade model with GPT. Our major findings are : 1) the introduction of GPT causes a product cycle from the North to the South followed by a reverse product cycle from the South to the North; 2) the presence of trading partner can cushion the macroeconomic shock experienced by the North.

Keywords: Open Economy; General Purpose Technologies; Trade Pattern; Real GDP Growth (search for similar items in EconPapers)
JEL-codes: F43 O30 (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:hit:hitjec:v:50:y:2009:i:2:p:87-98

DOI: 10.15057/18048

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