Vertical Innovation and Catching-Up: Implications of EU Integration for CEECs-5 (original) (raw)
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2007
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Vertical Innovation and Catching Up: Implications for Trade and Growth
2007
We consider a technologically backward country with persistent external imbalances and analyse the role of traded goods' relative quality content for competitiveness and growth. We build a model where a technological catching up process is driven by international knowledge spillovers and facilitated by the integration of markets. We derive analytically the impact of such a process on export and import demand functions. We find that the greater the country's ability to absorb foreign knowledge and improve upon foreign technologies, the greater its gain in competitiveness, and in the long-run growth rate of income. A numerical simulation confirms our findings.
1 Vertical Innovation and Catching Up: Implications for Trade and Growth
2007
We consider a technologically backward country with persistent external imbalances and analyse the role of traded goods ’ relative quality content for competitiveness and growth. We build a model where a technological catching up process is driven by international knowledge spillovers and facilitated by the integration of markets. We derive analytically the impact of such a process on export and import demand functions. We find that the greater the country’s ability to absorb foreign knowledge and improve upon foreign technologies, the greater its gain in competitiveness, and in the long-run growth rate of income. A numerical simulation confirms our findings.
2019
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Economic Development, Vertical Intra-Industry Trade and Gains from Trade
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