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Author: | Mendoza, R.U. |
Title: | Trade-induced learning and industrial catch-up |
Journal: | Economic Journal
2010 : AUG, VOL. 120:546 p. F313-F350 |
Index terms: | models productivity growth exports imports technology products |
Language: | eng |
Abstract: | This paper proposes a model of trade-induced learning whereby both domestic and cross-border learning externalities could drive long-run growth. This framework is used to synthesize the emerging empirical evidence, unveiling how trade-induced learning could underpin the mechanics behind trade and growth in at least three important ways: first, trading matters, as firms might be able to raise their productivity due to export and import linkages with buyers and suppliers; second, whom you trade with matters, as richer and more technologically advanced trading partners offer more scope for trade-induced learning; and third, what products you trade matters. |
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