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The Global Di ffusion of Ideas

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添加时间:2015-11-07 13:20:12

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资源简介
The Global Di usion of Ideas
 
Francisco J. Buera
Federal Reserve Bank of Chicago
Ezra Ober eld
Princeton
June 1, 2015
Preliminary and Incomplete
 
Abstract
We provide a tractable theory of innovation and di ffusion of technologies to explore the role of international trade and foreign direct investment (FDI). We model innovation and di ffusion as a process involving the combination of new ideas with insights from other industries or countries.We provide conditions under which each country's equilibrium frontier of knowledge converges to a Frechet distribution, and derive a system of di fferential equations describing the evolution of the scale parameters of these distributions, i.e., countries' stocks of knowledge. In particular,the growth of a country's stock of knowledge depends only on the its trade and FDI shares and the stocks of knowledge of its trading partners. We use this framework to quantify the dynamic gains from trade in the short and long run. We explore the model's potential to account for cross-sectional TFP di erences, long-run changes in TFP, and post-war growth miracles.
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