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Learning to Learn: The Role of Imitation and Trade inTechnological Diffusion

Author

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  • Connolly, Michelle P.
Abstract
An endogenous growth model is developed demonstrating both static and dynamic gains from trade for developing nations due to the beneficial effects of trade on imitation and technological diffusion. The concept of learning-to-learn in both imitative and innovative processes is incorporated into a quality-ladder model with North-South trade. Domestic technological progress occurs via innovation or imitation, while growth is driven by technological advances in the quality of domestically available inputs, regardless of country of origin. In the absence of trade, Southern imitation of Northern technology leads to asymptotic conditional convergence between the two countries, demonstrating the positive effect of imitation on Southern growth. Free trade generally results in a positive feedback effect between Southern imitation and Northern innovation yielding a higher common steady-state growth rate. Immediate conditional convergence occurs. Thus, trade in this model confers dynamic as well as static ben efits to the less developed South, even when specializing in imitative processes.

Suggested Citation

  • Connolly, Michelle P., 1997. "Learning to Learn: The Role of Imitation and Trade inTechnological Diffusion," Working Papers 97-25, Duke University, Department of Economics.
    • Handle: RePEc:duk:dukeec:97-25
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    Citations

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    Cited by:

    1. Olfa CHEHAIDER, 2009. "LES DeTERMINANTS DE L’ACTIVITe DE RECHERCHE ET DeVELOPPEMENT DES ENTREPRISES MANUFACTURIeRES TUNISIENNES," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 29, pages 159-179.
    2. Óscar Afonso, 2001. "The Impact of International Trade on Economic Growth," FEP Working Papers 106, Universidade do Porto, Faculdade de Economia do Porto.
    3. S. Luckraz, 2008. "Process Spillovers and Growth," Journal of Optimization Theory and Applications, Springer, vol. 139(2), pages 315-335, November.
    4. Michelle P. Connolly, 1998. "The dual nature of trade: measuring its impact on imitation and growth," Staff Reports 44, Federal Reserve Bank of New York.

    More about this item

    JEL classification:

    • F1 - International Economics - - Trade
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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