Global Knowledge and Trade Flows: Theory and Measurement

Nelson Lind and Natalia Ramondo

No 30590, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We study the global innovation and diffusion of ideas by introducing trade into the model in Eaton and Kortum (1999) (EK). This extension allows us to use international trade flows and country-level factor costs to estimate both the intensity of innovation within countries over time and diffusion rates across countries. We find significant specialization across the globe: some countries have high innovation rates, while other countries rely on diffusion. Although innovation is correlated with economic growth, there are many high income countries that primarily produce using diffused ideas. Additionally, these patterns shift over time — we estimate that a wave of innovation began in China during the early-2000’s, reducing its reliance on diffused technology.

JEL-codes: F1 O3 O4 (search for similar items in EconPapers)
Date: 2022-10
New Economics Papers: this item is included in nep-cse, nep-ino, nep-int, nep-knm and nep-tid
Note: EFG ITI
References: Add references at CitEc
Citations:

Published as Nelson Lind & Natalia Ramondo, 2024. "Global knowledge and trade flows: Theory and measurement," Journal of International Economics, .

Downloads: (external link)
http://www.nber.org/papers/w30590.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:30590

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w30590

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().