Winners and Losers in a North-South Model of Growth, Innovation and Product Cycles
نویسندگان
چکیده
The paper examines the gains from North-South trade and their distribution. In a `new growth, new trade' framework, we examine the factors that determine four phases or stages of development in the South as equilibria: specialisation in a traditional good; the South in addition copies Northern innovative manufactured goods; the South begins to innovate in its own right and nally a stage in which the South only innovates, as in the North. The main conclusion is that dynamic gains from trade create new winners, unskilled workers in the North and possibly skilled workers in the South. JEL Classi cation: F43, O41
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