Innovation, Knowledge Diffusion, and Globalization / Nelson Lind, Natalia Ramondo.

Format:

Book

Author/Creator:

Lind, Nelson.

Contributor:

National Bureau of Economic Research.

Ramondo, Natalia.

Series:

Working Paper Series (National Bureau of Economic Research) no. w25071.

NBER working paper series no. w25071

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2018.

Summary:

We review a recent body of theoretical literature that links the creation and diffusion of knowledge and technology to openness. We analyze two channels through which the spread of new ideas occurs: international trade and the activity of multinational firms (multinational production). The unifying theme of our survey is methodological. We focus on quantitative general equilibrium models that treat productivities as Fréchet random variables--as in the model of trade in Eaton and Kortum (2002) (EK). We present models in the literature that extend the EK model of trade to innovation, diffusion, and multinational firms, and examine the implications for counterfactuals related to the gains from trade. We finalize with new directions for research.

Notes:

Print version record

September 2018.