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Title: |
Learning-by-Trading and Commercial Policy |
| Author: |
Webb, Michael |
| Author
Affiliation: |
U KY |
| Source: |
International Economic Journal, Winter 1993, v. 7, no. 4, pp. 1-15 |
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Publication Date: |
Winter 1993 |
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Abstract: |
I first review the evidence that trade
directly promotes technological progress, and of the roles of
preparing-by-doing and adapting-by-doing. I use a simple model to show
that when trade directly promotes progress, there may be a first-best
argument for temporarily subsidizing trade. In analyze
learning-by-trading in combination with preparing-by-doing or
adapting-by-doing, plus the intersectoral spread of acquired technology.
Two policy conflicts can occur that reverse policy prescriptions over
time, calling for the sequential use of trade impediments and subsidies
or production taxes and subsidies. |
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