Technology Diffusion through Trade with Heterogeneous Firms

Bulent Unel ()

Departmental Working Papers from Department of Economics, Louisiana State University

Abstract: I investigate the long-run implications of trade and technology di�usion through trade, when �rms are heterogeneous and trade is costly. The paper integrates �rm heterogeneity and trade into product innovation growth models from endogenous growth theory. Two speci�ca- tions of the R&D process are considered. In the �rst, R&D uses labor and intermediate goods; in the second, it uses labor and available technology. I �nd that under both speci�cations, exposure to trade increases average productivity. Furthermore, under the �rst speci�cation exposure to trade always has a positive e�ect on economic growth, while it has an ambiguous e�ect on growth under the second.

Date: 2006-12
New Economics Papers: this item is included in nep-int
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Citations: View citations in EconPapers (6)

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Journal Article: Technology Diffusion through Trade with Heterogeneous Firms (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:lsu:lsuwpp:2006-15

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