Product Development and International Trade
| Title: | Product Development and International Trade |
| Author: |
Grossman, Gene M.; Helpman, Elhanan
Note: Order does not necessarily reflect citation order of authors. |
| Citation: | Grossman, Gene M., and Elhanan Helpman. 1989. Product development and international trade. Journal of Political Economy 97(6): 1261-1283. |
| Full Text & Related Files: |
Helpman_ProductDevelopment.pdf (1.971Mb; PDF) 
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| Abstract: | We develop a multicountry, dynamic general equilibrium model of product innovation and international trade to study the creation of comparative advantage through research and development and the evolution of world trade over time. In our model, firms must incur resource costs to introduce new products, and forward-looking potential producers conduct R & D and enter the product market whenever profit opportunities exist. Trade has both intraindustry and interindustry components, and the different incentives that face agents in different countries for investment and savings decisions give rise to intertemporal trade. We derive results on the dynamics of trade patterns and trade volume and on the temporal emergence of multinational corporations. |
| Published Version: | doi:10.1086/261653 |
| Terms of Use: | This article is made available under the terms and conditions applicable to Other Posted Material, as set forth at http://nrs.harvard.edu/urn-3:HUL.InstRepos:dash.current.terms-of-use#LAA |
| Citable link to this page: | http://nrs.harvard.edu/urn-3:HUL.InstRepos:3445094 |
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