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Trade Patterns, Technology Flows, and Productivity Growth

Wolfgang Keller ()

Working papers from Wisconsin Madison - Social Systems

Abstract: This paper presents a model of international trade in differentiated intermediate goods. Because intermediates are invented through costly R&D investments, employing foreign intermediates implies sharing the return to R&D with the inventor country. I first derive a relation of how domestic productivity is related to foreign R&D investments. In the subsequent empirical analysis, industry level data for eight OECD countries between 1970-91 is used to estimate that relation.

Keywords: INTERNATIONAL TRADE; RESEARCH AND DEVELOPMENT (search for similar items in EconPapers)
JEL-codes: F40 F14 (search for similar items in EconPapers)
Date: 1997
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