Equilibrium Technology Diffusion, Trade, and Growth

@article{Perla2021EquilibriumTD,
  title={Equilibrium Technology Diffusion, Trade, and Growth},
  author={Jesse Perla and Christopher Tonetti and Michael E. Waugh},
  journal={The American Economic Review},
  year={2021},
  volume={111},
  pages={73-128}
}
We study how opening to trade affects economic growth in a model where heterogeneous firms can adopt new technologies already in use by other firms in their home country. We characterize the growth rate using a summary statistic of the profit distribution: the mean-min ratio. Opening to trade increases the profit spread through increased export opportunities and foreign competition, induces more rapid technology adoption, and generates faster growth. Quantitatively, these forces produce large… 
2 Citations
CAN THE OPTIMAL TARIFF BE ZERO FOR A GROWING LARGE COUNTRY?
Can the optimal tariff be zero for a growing large country? To pursue the possibility, we extend the Rivera-Batiz--Romer lab-equipment model of endogenous technological change to include asymmetric
Human Capital Expansion and Global Value Chain Upgrading: Firm‐level Evidence from China
Firms actively participate in the production of the global value chain (GVC), which is an important driving force for economic development. Using a difference‐in‐difference method, our research shows

References

SHOWING 1-10 OF 53 REFERENCES
Technology, trade, and growth: A unified framework
Abstract Our recent work examines the links among innovation, technology, trade, and growth. One strand focuses on research activity, technology diffusion, and growth. The other examines technology
Innovation, firm dynamics, and international trade
We present a general equilibrium model of the response of firms' decisions to operate, innovate, and engage in international trade to a change in the marginal cost of international trade. We find
Dynamic Selection: An Idea Flows Theory of Entry, Trade and Growth
This paper develops an idea flows theory of trade and growth with heterogeneous firms. New firms learn from incumbent firms, but the diffusion technology ensures entrants learn not only from frontier
Equilibrium Imitation and Growth
The least productive agents in an economy can be vital in generating growth by spurring technology diffusion. We develop an analytically tractable model in which growth is created as a positive
Multi-Product Firms and Trade Liberalization
This paper develops a general equilibrium model of international trade that features selection across …rms, products and countries. Firms’export decisions depend on a combination of …rm
Trade and Growth with Heterogenous Firms
This paper explores the impact of trade on growth when firms are heterogeneous. We find that greater openness produces anti-and pro-growth effects. The Melitz-model selection effects raises the
Entry, exit, and firm dynamics in long run equilibrium
A dynamic stochastic model for a competitive industry is developed in which entry, exit, and the growth of firms' output and employment is determined. The paper extends long-run industry equilibrium
Economic Integration and Endogenous Growth
In a world with two similar, developed economies, economic integration can cause a permanent increase in the worldwide rate of growth. Starting from a position of isolation, closer integration can be
Endogenous Technological Change
Growth in this model is driven by technological change that arises from intentional investment decisions made by profit-maximizing agents. The distinguishing feature of the technology as an input is
Trade Liberalization and Firm Productivity: The Case of India
Abstract This paper exploits India's rapid, comprehensive, and externally imposed trade reform to establish a causal link between changes in tariffs and firm productivity. Pro-competitive forces,
...
1
2
3
4
5
...