Technological Determinants of Trade

Gene M. Grossman and Elhanan Helpman
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Gene M. Grossman: Princeton University
Elhanan Helpman: Tel Aviv University

Chapter 1 in Contemporary Economic Issues, 1998, pp 3-22 from Palgrave Macmillan

Abstract: Abstract International trade flows are guided by a variety of forces, including tastes, technologies, factor endowments, and domestic and foreign policies. Early classical writers emphasized cross-country differences in technological capabilities as the principal cause of trade. But models focusing on disparities in factor endowments came to dominate thinking about international trade in the twentieth century, following the seminal writings of the Swedish economists, Eli Heckscher and Bertil Ohlin. Interest in the technological determinants of trade came back into vogue in the 1980s, with the emergence of a ‘new trade theory’, and even more so in the early 1990s, when this theory became a building block for the ‘new growth theory’.

Keywords: Home Country; Comparative Advantage; Foreign Country; Technological Progress; Relative Wage (search for similar items in EconPapers)
Date: 1998
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Persistent link: https://EconPapers.repec.org/RePEc:pal:intecp:978-1-349-26084-3_1

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DOI: 10.1007/978-1-349-26084-3_1

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