Technology Diffusion through Trade with Heterogeneous Firms

Bulent Unel

30 citations0/0 files storedReview of International Economics

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Global trade and economics Economic Growth and Productivity Economic and Technological Innovation

Abstract

I investigate the long-run implications of trade and technology diffusion through trade, when firms are heterogeneous and trade is costly. This paper integrates firm heterogeneity and trade into a product innovation growth model from endogenous growth theory. I find that although exposure to trade increases average productivity, it has an ambiguous effect on economic growth and consumer welfare.

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1990Endogenous Technological Change 2003The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity 1992A Model of Growth Through Creative Destruction 1990A Model of Growth Through Creative Destruction 1995International R&D spillovers 2004Export Versus FDI with Heterogeneous Firms 1992Innovation and growth in the global economy 1999Endogenous Growth Theory

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2013Does Learning by Exporting Happen? Evidence from the Automobile Industry in China 2011A Ricardian model of trade and growth with endogenous trade status

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