Technological diffusion through trade and imitation
By: Michelle P. Connolly.
Contributors: Federal Reserve Bank of New York.
Series: Staff reports ;; no. 20; Staff reports (Federal Reserve Bank of New York : Online) ;; no. 20.
Publisher: Federal Reserve Bank of New York
Published: 1997
Place of publication: [New York, N.Y.]
Language: eng
Format: Electronic resource
Subjects: International trade -- Econometric models.; Diffusion of innovations.; Technology -- Developing countries -- Economic aspects.
Description: "An endogenous growth model is developed demonstrating both static and dynamic gains from trade for developing nations due to the beneficial effects of trade on imitation and technological diffusion.  The concept of learning-to-learn in both imitative and innovative processes is incorporated into a quality ladder model with North-South trade.  Domestic technological progress occurs via innovation or imitation, while growth is driven by technological advances in the quality of domestically available inputs, regardless of country of origin.  In the absence of trade, Southern imitation of Northern technology leads to asymptotic conditional convergence between the two countries, demonstrating the positive effect of imitation on Southern growth.  Free trade generally results in a positive feedback effect between Southern imitation and Northern innovation yielding a higher common steady-state growth rate.  Immediate conditional convergence occurs.  Thus, trade in this model confers dynamic as well as static benefits to the less developed South, even when specializing in imitative processes"--Federal Reserve Bank of New York web site.
Notes: Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 1/31/2005.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.