We consider the interaction of trade and technology diffusion in a two-region model of innovation and imitation. We find that globalization, either in the form of lower trade barriers or in faster diffusion of technology between innovator and imitator spurs innovation, benefiting both regions.
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Paper provided by DEGIT, Dynamics, Economic Growth, and International Trade in its series DEGIT Conference Papers with number
c009_008.
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Jonathan Eaton & Samuel Kortum, 2002.
"Technology, Geography, and Trade,"
Econometrica,
Econometric Society, vol. 70(5), pages 1741-1779, September.
[Downloadable!] (restricted)
Jonathan Eaton & Eva Gutierrez & Samuel Kortum, 1998.
"European Technology Policy,"
NBER Working Papers
6827, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
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