Technology diffusion through trade with heterogeneous firms

Document Type

Article

Publication Date

8-1-2010

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. © 2010 Blackwell Publishing Ltd.

Publication Source (Journal or Book title)

Review of International Economics

First Page

465

Last Page

481

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