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Gains And Losses From International Trade In A Knowledge-Driven Semi-Endogenous Growth Model With Heterogeneous Firms

Author

Listed:
  • KATSUFUMI FUKUDA

    (Graduate School of Economics, Kobe University, 2-1Rokkodai-cho, Nada-ku, kobe, Hyogo, 657-8501, Japan;
    Department of Economics, University of Florida, Gainesville, FL 32611-7140, USA)

Abstract

We consider a semi endogenous R&D growth model with international trade, firm heterogeneity, and local knowledge spillover in a closed economy and international knowledge spillover in a symmetric two country economy. We show that by opening trade R&D difficulty (the number of varieties produced) and welfare are ambiguously affected. When the international spillover is large (small), the former is increased (decreased). When the size of the international knowledge spillover is large (small) or the size of the international knowledge spillover is small and the size of intertemporal knowledge spillover is small (large), the latter increases (decreases). Without intertemporal and international knowledge spillovers, welfare increases.

Suggested Citation

  • Katsufumi Fukuda, 2012. "Gains And Losses From International Trade In A Knowledge-Driven Semi-Endogenous Growth Model With Heterogeneous Firms," Global Journal of Economics (GJE), World Scientific Publishing Co. Pte. Ltd., vol. 1(02), pages 1-11.
    • Handle: RePEc:wsi:gjexxx:v:01:y:2012:i:02:n:s2251361212500139
    DOI: 10.1142/S2251361212500139
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    Cited by:

    1. Katsufumi Fukuda, 2013. "The Effect of Globalization in a Semi Endogenous Growth Model with Firm Heterogeneity, Endogenous International Spillover, and Trade," Discussion Paper Series DP2013-21, Research Institute for Economics & Business Administration, Kobe University.

    More about this item

    Keywords

    Heterogeneous firms; semi endogenous growth; gains and losses from international trade; F12; F15; O30; O33;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F15 - International Economics - - Trade - - - Economic Integration
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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