TY  - JOUR
AU  - Helliwell,John F.
TI  - Trade and Technical Progress
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 4226
PY  - 1992
Y2  - December 1992
UR  - http://www.nber.org/papers/w4226
L1  - http://www.nber.org/papers/w4226.pdf
N1  - Author contact info:
John F. Helliwell
Canadian Institute for Advanced Research
and Department of Economics
University of British Columbia
997-1873 East Mall
Vancouver BC V6T 1Z1
CANADA
Tel: 604/822-4953
Fax: 604/822-5915
E-Mail: john.helliwell@ubc.ca
M2  - featured in NBER digest on 1993-05-01
AB  - Using annual data 1963-1989 for technical progress in GECD countries (as measured by Solow residuals constructed using GECD data made internationally comparable through the use of purchasing power parties), the paper first shows that there has been significant international convergence in the rates of technical progress, with the initially poorer countries having faster technical progress. Country effects are found to be more significant than year effects, so subsequent analysis of the effects of trade on the growth of technology are done using 27 annual cross-sections of 19 countries each, with cross-equation restrictions applied and tested. The results suggest that both the level data and rate of increase in trade intensity lead to more rapid technical progress, with some additional effect from country size. Finally, there appears to be no evidence that countries with higher investment rates have had faster rates of technical progress, once the capital-deepening effects of investment have been taken into account via the production function used to define the Solow residuals.
ER  -