We analyze a world economy composed of a continuum of small countries producing two final goods, the learning-by-doing potentials of which differ significantly. In autarky, there are intersectoral knowledge spillovers. A steady-state equilibrium common to all countries exists, in which both goods are produced. The growth rate is related to the share of the leading sector in the economy. With trade, in the absence of international spillovers, the growth rates of the trading countries differ according to their comparative advantage. Both dynamic gains and losses from trade may be present. We explore the possibility of international transmission of knowledge. It generates convergence of long run growth rates across countries, with the duration of such convergence being a decreasing function of the intensity of the international spillovers.
“International Trade and Uneven Growth: A Model with Intersectoral Spillovers of Knowledge”
MURAT, MARINA GIOVANNA;
1998-01-01
Abstract
We analyze a world economy composed of a continuum of small countries producing two final goods, the learning-by-doing potentials of which differ significantly. In autarky, there are intersectoral knowledge spillovers. A steady-state equilibrium common to all countries exists, in which both goods are produced. The growth rate is related to the share of the leading sector in the economy. With trade, in the absence of international spillovers, the growth rates of the trading countries differ according to their comparative advantage. Both dynamic gains and losses from trade may be present. We explore the possibility of international transmission of knowledge. It generates convergence of long run growth rates across countries, with the duration of such convergence being a decreasing function of the intensity of the international spillovers.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
