Technology gaps, trade and income

Sampson, Thomas ORCID: 0009-0006-2237-5497 (2019) Technology gaps, trade and income. CEP Discussion Papers (1627). Centre for Economic Performance, LSE, London, UK.

Text (dp1627) - Published Version Download (630kB)

• Publisher
• Author
• http://cep.lse.ac.uk/pubs/download/dp162...

Abstract

This paper studies the origins and consequences of international technology gaps. I develop an endogenous growth model where R&D efficiency varies across countries and productivity differences emerge from firm-level technology investments. The theory characterizes how innovation and learning determine technology gaps, trade and global income inequality. Countries with higher R&D efficiency are richer and have comparative advantage in more innovation-dependent industries where the advantage of backwardness is lower and knowledge spillovers are more localized. I estimate R&D efficiency by country and innovation-dependence by industry from R&D and bilateral trade data. Calibrating the model implies technology gaps, due to cross-country differences in R&D efficiency, account for around one-quarter to one-third of nominal wage variation within the OECD.

Item Type:	Monograph (Discussion Paper)
Official URL:	http://cep.lse.ac.uk/_new/publications/series.asp?...
Additional Information:	© 2019 The Author
Divisions:	Economics
Subjects:	H Social Sciences > HB Economic Theory T Technology > T Technology (General) H Social Sciences > HF Commerce
JEL classification:	F - International Economics > F1 - Trade > F11 - Neoclassical Models of Trade F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F43 - Economic Growth of Open Economies O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O14 - Industrialization; Manufacturing and Service Industries; Choice of Technology O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O41 - One, Two, and Multisector Growth Models
Date Deposited:	06 Dec 2019 11:48
Last Modified:	11 Dec 2024 19:32
URI:	http://eprints.lse.ac.uk/id/eprint/102812

Actions (login required)

View Item