Innovation, Diffusion, and Trade: Theory and Measurement
Ana Maria Santacreu
MPRA Paper from University Library of Munich, Germany
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)
New Economics Papers: this item is included in nep-eff, nep-ino and nep-knm
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Journal Article: Innovation, diffusion, and trade: Theory and measurement (2015)
Working Paper: Innovation, Diffusion, and Trade: Theory and Measurement (2014)
Working Paper: Innovation, Diffusion, and Trade: Theory and Measurement (2012)
Working Paper: Innovation, diffusion and trade: theory and measurement (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:35311
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