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Innovation, Diffusion, and Trade: Theory and Measurement

Ana Maria Santacreu

MPRA Paper from University Library of Munich, Germany

Abstract: Growth and imports are correlated across countries, but the mechanisms underlying this relationship are not well understood. I develop a multi-country model in which imports and growth are connected by technological innovations and their international diffusion through trade. Fitting the model to data on innovation, productivity, and trade in varieties, I find that most of the growth-imports correlation is explained by these two mechanisms. I also find that the trade channel has been particularly important in developing countries, accounting for about three-fourths of their growth. Finally, I run counterfactuals analysis.

Keywords: Trade; productivity; innovation; technology diffusion; growth (search for similar items in EconPapers)
JEL-codes: O47 O30 F12 F43 (search for similar items in EconPapers)
Date: 2011-12-07
New Economics Papers: this item is included in nep-eff, nep-ino and nep-knm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7) Track citations by RSS feed

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Related works:
Journal Article: Innovation, diffusion, and trade: Theory and measurement (2015) Downloads
Working Paper: Innovation, Diffusion, and Trade: Theory and Measurement (2014) Downloads
Working Paper: Innovation, Diffusion, and Trade: Theory and Measurement (2012) Downloads
Working Paper: Innovation, diffusion and trade: theory and measurement (2009) Downloads
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