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Title: |
Tradable as the Engine of Growth |
| Author: |
Xie, Xin |
| Author
Affiliation: |
Chinese U Hong
Kong |
| Source: |
International Economic Journal, Autumn 1996, v. 10, no. 3, pp. 81-104 |
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Publication Date: |
Autumn 1996 |
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Abstract: |
The paper presents a dynamic model of
North-South trade in which technological progress results from learning
by doing in the tradable sector. In the absence of across country
spillovers, we show that trade stimulates technological progress more in
the South, so the technological gap closes. However, when many LDCs
trade with the DC, the technological gap may not be completely closed if
the initial gap is bigger than a threshold level; and the technological
gap may even be enlarged if the initial gap is in an intermediate range.
As an alternative to trading with the North, South-South trade is
considered. |
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