Data And code for: "Knowledge Diffusion, Trade and Innovation across Countries and sectors"

Principal Investigator(s):  View help for Principal Investigator(s) Ana Maria Santacreu, Federal Reserve Bank of Saint Louis; Jie Cai, SHUFE; Nan Li, IMF

Version:  View help for Version V1

Name File Type Size Last Modified
  CLS_ReplicationPackage 08/28/2020 09:45:AM

Project Citation: 

Santacreu, Ana Maria, Cai, Jie, and Li, Nan. Data And code for: “Knowledge Diffusion, Trade and Innovation across Countries and sectors.” Nashville, TN: American Economic Association [publisher], 2021. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2021-12-17. https://doi.org/10.3886/E120281V1

Project Description

Summary:  View help for Summary This paper provides a unified framework for quantifying cross-country and cross-sector interactions among trade, innovation, and knowledge diffusion. This framework is used to study the effect of trade liberalization in an endogenous growth model with comparative advantage and the stock of knowledge determined by innovation and diffusion. The model is calibrated to match observed cross-country and cross-sector heterogeneity in production, innovation and knowledge spillovers. The counterfactual analysis shows that a reduction in trade costs induces a re-allocation of R&D and comparative advantage across sectors. Heterogeneous knowledge diffusion amplifies specialization effects of trade-induced R&D re-allocation, becoming an important source of welfare. 

Scope of Project

JEL Classification:  View help for JEL Classification
      F12 Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
      O33 Technological Change: Choices and Consequences; Diffusion Processes
      O41 One, Two, and Multisector Growth Models
      O47 Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence


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V1 [2021-12-17]

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