Technology Diffusion through Trade with Heterogeneous Firms |
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| Authors: | Bulent Unel |
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| Institution: | 1. Louisiana State University, USA;2. I am indebted to Wolfgang Keller, Kim Ruhl, and David Weil for insightful comments and discussions. I also thank seminar participants at Louisiana State University, University of South Carolina, University of Texas at Austin, and York University for their helpful comments. |
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| Abstract: | I investigate the long‐run implications of trade and technology diffusion through trade, when firms are heterogeneous and trade is costly. This paper integrates firm heterogeneity and trade into a product innovation growth model from endogenous growth theory. I find that although exposure to trade increases average productivity, it has an ambiguous effect on economic growth and consumer welfare. |
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