TY  - JOUR
AU  - Eaton,Jonathan
AU  - Kortum,Samuel
TI  - Technology and Bilateral Trade
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 6253
PY  - 1997
Y2  - November 1997
UR  - http://www.nber.org/papers/w6253
L1  - http://www.nber.org/papers/w6253.pdf
N1  - Author contact info:
Jonathan Eaton
Department of Economics
Penn State University
608 Kern Graduate Building
University Park, PA 16802-3306
Tel: (814) 865 - 8871
Fax: (814) 863 - 4775
E-Mail: jxe22@psu.edu

Samuel S. Kortum
Department of Economics
Yale University
P.O. Box 208264
New Haven, CT 06520
Tel: 773/702-8251
Fax: 773/702-8490
E-Mail: kortum@uchicago.edu
AB  - 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.
ER  -