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: F14 F40 (search for similar items in EconPapers)
Pages: 12 pages
Date: 1997
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Citations: View citations in EconPapers (18)

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Working Paper: Trade Patterns, Technology Flows, and Productivity Growth (1997)
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Persistent link: https://EconPapers.repec.org/RePEc:att:wimass:9701

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