000			01303nam a22001457a 4500
999			_c520315 _d520315
008			220907b ||||| |||| 00| 0 eng d
100			_aCai, Jie Li, Nan and Santacreu, Ana Maria _933910
245			_aKnowledge diffusion, trade, and innovation across countries and sectors
260			_aAmerican Economic Journal: Macroeconomics
300			_a14(1), Jan, 2022: p.104-145
520			_aThis paper provides a unified framework for quantifying the cross-country and cross-sector interactions among trade, innovation, and knowledge diffusion. This framework is used to study the effect of trade liberalization in an endogenous growth model in which comparative advantage and the stock of knowledge are determined by innovation and diffusion. The model is calibrated to match observed cross-country and cross-sector heterogeneity in production, innovation efficiency, and knowledge spillovers. The counterfactual analysis shows that a reduction in trade costs induces a reallocation of R&D and comparative advantage across sectors. Heterogeneous knowledge diffusion amplifies the specialization effects of trade-induced R&D reallocation, becoming an important source of welfare. – Reproduced
773			_aAmerican Economic Journal: Macroeconomics
906			_aINTERNATIONAL TRADE
942			_cAR