NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Technology and Bilateral Trade

Jonathan Eaton, Samuel Kortum

NBER Working Paper No. 6253
Issued in November 1997
NBER Program(s):   ITI

We develop a Ricardian model to explore the role of trade in spreading the benefits of" innovation. The theory delivers an equation for bilateral trade that gravity specification, but identifies underlying parameters of technology. We estimate the" equation using trade in manufactures among the OECD. The parameter estimates allow us to" simulate the model to investigate the role of trade in spreading the benefits of innovation and to" examine the effects of lower trade barriers. Typically foreigners benefit by only a tenth as much" as the innovating country, but in some cases the benefits to close neighbors approach those of the" innovator.

download in pdf format
   (1371 K)

email paper

This paper is available as PDF (1371 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w6253

Users who downloaded this paper also downloaded these:
Deardorff Determinants of Bilateral Trade: Does Gravity Work in a Neoclassical World?
Davis and Harrigan w13139 Good Jobs, Bad Jobs, and Trade Liberalization
Eaton and Kortum w12385 Innovation, Diffusion, and Trade
Deardorff w5377 Determinants of Bilateral Trade: Does Gravity Work in a Neoclassical World?
Eaton and Kortum w4931 International Patenting and Technology Diffusion
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us