Learning by Doing, Trade in Capital Goods and Growth

Ai Ting Goh and Jacques Olivier
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Jacques Olivier: National University of Singapore

No 854, Econometric Society World Congress 2000 Contributed Papers from Econometric Society

Abstract: This paper aims at reconciling theoretical models of endogenous growth with the empirical evidence on trade and growth. In particular, we show that the conventional wisdom according to which trade is growth-impairing for a country with comparative advantage in goods with limited opportunities for learning fails to hold when the imported good is a capital good. The intuition is that the country gains access to cheaper capital goods, which raises investment, output per worker and learning by doing.

Date: 2000-08-01
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Related works:
Journal Article: Learning by doing, trade in capital goods and growth (2002)
Working Paper: Learning by doing, trade in capital goods and growth (2002)
Working Paper: Learning by Doing, Trade in Capital Goods and Growth (2001)
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