By developing a Ricardian trade model that features technology transfer via foreign direct investment (FDI), we show that technology transfer via multinational enterprises (MNEs) increases world output and trade in goods and services. When there are many goods a continuous reduction in the cost of technology transfer will cause increasingly more technologically advanced goods to go through the product cycle, i.e., goods initially produced in the advanced North are later produced in the backward South as a result of increased technology transfer via MNEs.
|Number of pages||33|
|Publication status||Published - Aug 2000|
|Event||The 2000 World Congress of the Econometric Society - Seattle, United States|
Duration: 11 Aug 2000 → 16 Aug 2000
|Conference||The 2000 World Congress of the Econometric Society|
|Period||11/08/00 → 16/08/00|