TY - JOUR AU - Grossman,Gene M. AU - Helpman,Elhanan TI - Technology and Trade JF - National Bureau of Economic Research Working Paper Series VL - No. 4926 PY - 1994 Y2 - November 1994 UR - http://www.nber.org/papers/w4926 L1 - http://www.nber.org/papers/w4926.pdf N1 - Author contact info: Gene M. Grossman International Economics Section Department of Economics Princeton University Princeton, NJ 08544 Tel: 609/258-4823 Fax: 609/258-1374 E-Mail: grossman@princeton.edu Elhanan Helpman Department of Economics Harvard University 1875 Cambridge Street Cambridge, MA 02138 Tel: 617-495-4690 Fax: 617-495-7730 E-Mail: ehelpman@harvard.edu AB - We survey research on the relationship between technology and trade. We begin with the old literature, which treated the state of technology as exogenous and asked how changes in technology affect the trade pattern and welfare. Recent research has attempted to endogenize technological progress which results either from learning- by-doing or from investments in research and development. This allows one to examine not only how technology affects trade, but also how trade affects the evolution of technology. We emphasize the parallels between the models with learning-by-doing and those with explicit R&D and highlight the role that the geographic extent of knowledge spillovers plays in mediating the relationship between trade and technological progress. ER -