I thank Chandrika Bahadur, Pedro Conceição, Paola Deles, Steven Machin and two anonymous referees for valuable comments on an earlier draft. I am also indebted to my former professors in trade and development policy, Dani Rodrik, Dominick Salvatore and Henry Schwalbenberg. Any remaining errors of commission or of omission herein are mine alone. The views expressed here do not necessarily reflect those of the United Nations or the Asian Institute of Management.
1468-0297/asset/olbannerleft.gif?v=1&s=1af3b26d7b3c49289a4d2ffedc5d9b29e681ebe0)
1468-0297/asset/ecoj_centre.gif?v=1&s=011eaeeafeffba596483ec623ce4b679dbe5c83f)
1468-0297/asset/ecoj_right.gif?v=1&s=af2049451bcddd5018e9fd2c36fddf34bc9e0a5c)
Trade-induced Learning and Industrial Catch-up†
Article first published online: 21 JUL 2010
DOI: 10.1111/j.1468-0297.2010.02379.x
© The Author(s). Journal compilation © Royal Economic Society 2010
Additional Information
How to Cite
Mendoza, R. U. (2010), Trade-induced Learning and Industrial Catch-up. The Economic Journal, 120: F313–F350. doi: 10.1111/j.1468-0297.2010.02379.x
- †
Publication History
- Issue published online: 21 JUL 2010
- Article first published online: 21 JUL 2010
- Abstract
- Article
- References
- Cited By
This article develops a model of trade-induced learning whereby both domestic and cross-border learning externalities could drive long-run growth. This framework is used to synthesise the emerging empirical evidence, revealing how trade-induced learning could underpin the mechanics behind trade and growth in at least three important ways: first, trading matters, as firms might be able to increase their productivity due to export and import linkages with buyers and suppliers; second, whom you trade with matters, as richer and more technologically advanced trading partners offer more scope for trade-induced learning; and third, what products you trade matters.