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Title:Can trade really hurt? : An empirical follow-up on Samuelson's controversial paper PDF Logo
Authors:Bitzer, Jürgen
Görg, Holger
Schröder, Philipp J. H.
Issue Date:2008
Citation:[Series:] Kiel working paper [No.:] 1451 [Editor:] Kiel Inst. for the World Economy, Kiel
Series/Report no.:Kiel working paper 1451
Abstract:This paper investigates Samuelson's (JEP, 2004) argument that technical progress of the trade partner may hurt the home country. We illustrate this prospect in a simple Ricardian model for sitations with outward knowledge spillovers. Within this framework Samuelson's Act II effects may occur. Based on industry level panel data for seventeen OECD countries for the period 1973 to 2000 we show econometrically that the outflow of domestic knowledge via exports or FDI may have a negative impact on industry output in the home country. This is particularly so when exporting to technological less advanced oountries and, more specifically, China.
Subjects:International R and D spillovers
outward foreign direct investment
export driven spillovers
JEL:F10
F11
F14
O30
Document Type:Working Paper
Appears in Collections:Kieler Arbeitspapiere, IfW
Publikationen von Forscherinnen und Forschern des IfW

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