
doi: 10.20955/wp.2014.042
Growth and imports are correlated across countries, but the mechanisms underlying this relationship are not well understood. I develop a multi-country model in which imports and growth are connected by technological innovations and their international diffusion through trade. Fitting the model to data on innovation, productivity, and trade in varieties, I find that most of the growth-imports correlation is explained by these two mechanisms. I also find that the trade channel has been particularly important in developing countries, accounting for about three-fourths of their growth. Finally, I run counterfactuals analysis.
Aggregate Productivity, Cross-Country Output Convergence, O47 - Empirical Studies of Economic Growth, Fragmentation, O30 - General, F43 - Economic Growth of Open Economies, F12 - Models of Trade with Imperfect Competition and Scale Economies
Aggregate Productivity, Cross-Country Output Convergence, O47 - Empirical Studies of Economic Growth, Fragmentation, O30 - General, F43 - Economic Growth of Open Economies, F12 - Models of Trade with Imperfect Competition and Scale Economies
| selected citations These citations are derived from selected sources. This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically). | 3 | |
| popularity This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network. | Average | |
| influence This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically). | Average | |
| impulse This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network. | Average |
