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Endogenous Growth and International Technology Diffusion

Michael Waugh, Christopher Tonetti () and Jesse Perla ()

No 1005, 2012 Meeting Papers from Society for Economic Dynamics

Abstract: This paper studies international technology and idea flows and their effects on growth and the welfare gains from openness. We analyze a model where producers decide either to acquire productivity-increasing ideas through search or to produce domestically and potentially for export with their existing productivity. These choices (both domestically and abroad) jointly determine the distribution of productivity-increasing ideas availablewhich in turn affect search and exporting decisions. We characterize the balance growth path and transition dynamics for this economy, thereby allowing us to provide a theory as to how openness changes technology/idea adoption, growth, and the welfare gains from openness.

Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:red:sed012:1005

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