The Global Diffusion of Ideas

Francisco Buera

No 1099, 2014 Meeting Papers from Society for Economic Dynamics

Abstract: We provide a tractable theory of innovation and diffusion of technologies to explore the role of international trade and foreign direct investment (FDI). We model innovation and diffusion as a process involving the combination of new ideas with insights from other industries or countries. We provide conditions for the equilibrium distribution of productivity in each country to be Frechet, and derive a system of differential equations describing the evolution of the scale parameter of these distributions, i.e., the stock of ideas. In particular, the growth of the stock of ideas in a countries is a weighted sum of the stock of ideas in all countries, where the weights are given by trade and FDI shares. We use this framework to quantify the dynamics gains from trade and FDI.

Date: 2014
New Economics Papers: this item is included in nep-int
References: Add references at CitEc
Citations: View citations in EconPapers (15)

Downloads: (external link)
https://red-files-public.s3.amazonaws.com/meetpapers/2014/paper_1099.pdf (application/pdf)

Related works:
Working Paper: The Global Diffusion of Ideas (2016)
Working Paper: The Global Diffusion of Ideas (2016)
Working Paper: The Global Diffusion of Ideas (2015)
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:red:sed014:1099

Access Statistics for this paper

More papers in 2014 Meeting Papers from Society for Economic Dynamics Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA. Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().