1831 As a factor influencing productivity, a country's own research and development to generate new technology is more important than that of the average foreign country. It is generally difficult to separate the effect of importing intermediate goods with embodied technology from the effect of other channels of international technology transmission. According to this study, international trade...

This paper develops a quality-ladder growth model with elastic labor supply and distortionary taxes to analyze the effects of different subsidy instruments: subsidies production final goods, purchase intermediate research development (R&D). Moreover, is calibrated US data compare welfare implications these subsidies. The main results are as follows. First, we analytically show that an optimal c...

Abstract We examine how political conflicts affect trade, using both the Goldstein score that scales all daily worldwide and firm-country-product level data of Chinese imports. find reduce imports in general. Specifically, (i) State-owned enterprises (SOEs) are most reduced, effects mostly fall on intermediate goods while not so much capital goods; (ii) foreign-invested (FIEs) less negatively a...

Using firm-level census data, this paper examines the spillover effects of foreign direct investment (FDI) on domestic firms in the Chinese manufacturing industry between 2000 and 2003. We find that FDI has a significant positive spillover on industry productivity that decreases as the share of FDI in the industry increases. These positive spillovers are more likely to occur through forward lin...

This paper examines the effect of immigration on the US trade flows. The model hypothesizes that immigration facilitates international trade with home countries by lowering transaction costs. Immigrants also demand products from their country of origin, and thus stimulate trade. Using a panel data set I estimate a dynamic, fixed-effect model. The immigrant stock, a proxy for transaction costs, ...

Very few durable goods are recovered at the end of their useful lives. However, this situation could reverse with the development of a stronger remanufacturing industry in the economy. This paper evaluates the impact of remanufacturing in a hypothetical situation where remanufacturing holds a significant share of the economy, presently dominated by the original manufacturing industries. We adap...

Per capita income in the richest countries of the world exceeds that in the poorest countries by more than a factor of 50. What explains these enormous differences? This paper returns to several old ideas in development economics and proposes that linkages, complementarity, and superstar effects are at the heart of the explanation. First, linkages between firms through intermediate goods delive...