Cookies?
Library Header Image
LSE Research Online LSE Library Services

Technology gaps, trade and income

Sampson, Thomas (2019) Technology gaps, trade and income. CEP Discussion Papers (1627). Centre for Economic Performance, LSE, London, UK.

[img] Text (dp1627) - Published Version
Download (630kB)

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: 12 Sep 2020 23:13
URI: http://eprints.lse.ac.uk/id/eprint/102812

Actions (login required)

View Item View Item

Downloads

Downloads per month over past year

View more statistics