Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/93737
Authors: 
Dion, David-Pascal
Year of Publication: 
2004
Series/Report no.: 
SFB/TR 15 Discussion Paper 21
Abstract: 
This paper contributes to the empirical literature by providing a quantitative measurement of the influence of regional trade integration on productivity. For this purpose we address the link between trade and productivity thanks to knowledge spillovers in a multi-country model. The interdependence that connects countries in an international web promotes exchanges of goods, services, people, capital and hence ideas, knowledge, innovation, and technology. Economic integration encourages thus both new ideas and their diffusion. We observe that a country's productivity depends on its own R&D efforts as well as the R&D efforts of its trading partners. These R&D spillovers can then spread across countries and sectors. Thanks to the transfer of technology allowed by bilateral trade and investment, regional trade integration has a positive impact on long-term growth.
Subjects: 
regional economic integration
endogenous growth
economic geography
JEL: 
F12
F15
F43
O18
O30
O41
R11
R12
R13
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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