Technological catching up, competitiveness and growth

Eleonora Cavallaro () and Marcella Mulino ()

The Journal of International Trade & Economic Development, 2009, vol. 18, issue 4, 505-525

Abstract: We build an endogenous growth model for a technologically laggard country and analyse the implications for competitiveness when trade occurs in quality-differentiated products. We find that the conditions for an optimal growth with a balanced current account and no adverse terms-of-trade effects depend on the country's ability to compete in 'quality dominated markets' thanks to a successful technological catching up. We argue that the greater the ability to absorb foreign knowledge and improve upon foreign technologies, the greater the gains in competitiveness, and the benefits to long-run growth. A numerical simulation confirms our findings.

Keywords: vertical innovation; technological change and catching up; economic growth of open economies (search for similar items in EconPapers)
Date: 2009
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/09638190903217370 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:jitecd:v:18:y:2009:i:4:p:505-525

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RJTE20

DOI: 10.1080/09638190903217370

Access Statistics for this article

The Journal of International Trade & Economic Development is currently edited by Pasquale Sgro, David E.A. Giles and Charles van Marrewijk

More articles in The Journal of International Trade & Economic Development from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().