Library Header Image
LSE Research Online LSE Library Services

Technology gaps, trade and income

Sampson, Thomas (2022) Technology gaps, trade and income. American Economic Review. ISSN 0002-8282 (In Press)

[img] Text (Technology gaps, trade and income) - Accepted Version
Pending embargo until 1 January 2100.

Download (698kB) | Request a copy


This paper quantifies the contribution of technology gaps to international income inequality. I develop an endogenous growth model where cross-country differences in R&D efficiency and cross-industry differences in innovation and adoption opportunities together determine equilibrium technology gaps, trade patterns and income inequality. Higher R&D efficiency countries are richer and have comparative advantage in more innovation-dependent industries. I calibrate R&D efficiency by country and innovation-dependence by industry using R&D, patent and bilateral trade data. Counterfactual analysis implies technology gaps account for one-quarter to one-third of nominal wage variation within the OECD.

Item Type: Article
Additional Information: © 2022 American Economic Review.
Divisions: Economics
Date Deposited: 18 Nov 2022 16:51
Last Modified: 19 Nov 2022 00:15

Actions (login required)

View Item View Item


Downloads per month over past year

View more statistics