 A ‘Technology Gap’ Model of International TradePaul Krugman
Chapter 2 in Structural Adjustment in Developed Open Economies, 1985, pp 35-61 from Palgrave Macmillan Abstract: Abstract One of the most important trends in the world economy in recent decades has been the gradual erosion of the technological superiority of the industrial nations in general, and of the USA in particular. To this ‘closing of the gap’ may be attributed the decline of some traditional industries in the advanced countries; the increasing relative importance of high-technology products in the advanced countries’ exports; and the secular decline in US relative wages and the US real exchange rate. These effects on trade of technology and technological change are at the heart of the debate on international economic policy. Furthermore, there is widespread agreement on certain ways of looking at this issue — such as the common image of a ‘ladder’ of countries whose exports can be ranked on a ‘scale’ of goods — which suggest an implicit model shared by many observers. Yet this model has not been formalised. To a remarkable extent the treatment of technology in formal trade theory has failed to connect with policy concerns. Keywords: International Trade; Comparative Advantage; Technical Change; Real Exchange Rate; Technological Progress (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:intecp:978-1-349-17919-0_2 Ordering information: This item can be ordered from DOI: 10.1007/978-1-349-17919-0_2 Access Statistics for this chapter More chapters in International Economic Association Series from Palgrave Macmillan |
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