English, Article, Journal or magazine article edition: Trade and Uneven Growth Robert C. Feenstra

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Bookmark: http://trove.nla.gov.au/version/140048
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Trade and Uneven Growth
Author
  • Robert C. Feenstra
Physical Description
  • preprint
Notes
  • We consider trade between two countries of unequal size, where the creation of new intermediate inputs occurs in both. We assume that the knowledge gained from R&​D in one country does not spillover to the other. Under autarky, the larger country would have a higher rate of product creation. When trade occurs in the final goods, we find that the smaller country has its rate of product creation stowed, even in the long run. In contrast, the larger country enjoys a temporary increase in its rate of R&​D. We also examine the welfare consequences of trade in the final goods, which depend on whether the intermediate inputs are traded or not.
  • RePEc:nbr:nberwo:3276
Language
  • English
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