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Learning by doing and the dynamic effects of international trade

Young, Alwyn (1991) Learning by doing and the dynamic effects of international trade. Quarterly Journal of Economics, 106 (2). pp. 369-405. ISSN 0033-5533

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Identification Number: 10.2307/2937942


Using an endogenous growth model in which learning by doing, although bounded in each good, exhibits spillovers across goods, this paper investigates the dynamic effects of international trade. Examining the interaction of a LDC and a DC, the latter distinguished by a higher initial level of knowledge, the author finds that, under free trade, the LDC (DC) experiences rates of technical progress and GDP growth less than or equal (greater than or equal to) those enjoyed under autarky. Since both countries enjoy the usual static gains from trade, free trade may, nevertheless, improve the welfare of LDC consumers.

Item Type: Article
Official URL:
Additional Information: © 1991 the President and Fellows of Harvard College and the Massachusetts Institute of Technology
Divisions: Economics
Subjects: H Social Sciences > H Social Sciences (General)
JEL classification: F - International Economics > F1 - Trade > F10 - General
F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance
Date Deposited: 06 Apr 2011 14:35
Last Modified: 15 Sep 2023 12:10

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