A Theory of North-South Trade and Globalization

Paul Segerstrom and Elias Dinopoulos

No 30, 2004 Meeting Papers from Society for Economic Dynamics

Abstract: This paper develops a dynamic general equilibrium model of North-South trade. Northern firms devote resources to innovative R&D to discover higher quality products and Southern firms devote resources to imitative R&D to copy state-of-the-art quality products. Both innovation and imitation rates are endogenously determined as well as the degree of wage inequality between Northern and Southern workers. The steady-state effects of globalization and stronger protection of intellectual property are analyzed

Keywords: Economic Growth; North-South Trade; Globalization (search for similar items in EconPapers)
JEL-codes: F12 F43 O34 (search for similar items in EconPapers)
Date: 2004
New Economics Papers: this item is included in nep-dev and nep-dge
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Citations: View citations in EconPapers (14)

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Working Paper: A Theory of North-South Trade and Globalization (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:red:sed004:30

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