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dc.contributor.authorDiao, X.en_US
dc.contributor.authorRoe, T.en_US
dc.contributor.authorYeldan, E.en_US
dc.date.accessioned2015-07-28T11:56:49Z
dc.date.available2015-07-28T11:56:49Z
dc.date.issued1999en_US
dc.identifier.issn0304-3878
dc.identifier.urihttp://hdl.handle.net/11693/11083
dc.description.abstractWe introduce and explore a general equilibrium model with R&D-driven endogenous growth, whose antecedents are the models of Romer (1990) [Romer, P.M., 1990. Endogenous technological change. Journal of Political Economy, 98, S71-102] and Grossman and Helpman (1991) [Grossman, G.M., Helpman E., 1991. Innovation and Growth in the Global Economy, The MIT Press, Cambridge]. Utilizing evidence front recent econometric studies on sources of growth, the model also accounts explicitly for cross-border technological spillovers. The model is specified and calibrated to data from Japan, and is solved to obtain both the transitional and the steady-state equilibria. We explore the effects of selective trade and R&D promotion policies on long-run growth and social welfare. The model results suggest that while a strategic trade policy has little effect on re-allocating resources into domestic R&D activities, it can significantly affect the cross-border spillovers of technological knowledge, which, in turn, stimulates growth. We find that trade liberalization may cause the growth rate to fall and lead to a loss of social welfare in the long-run, although it improves welfare in the short-run. R&D promotion policies stimulate growth by inducing private agents to allocate more resources to domestic R&D, as well as to take greater advantage of global R&D spillovers. Here, we find significantly high growth effects together with sizable gains in social welfare at low incidence to tax payers. (C) 1999 Elsevier Science B.V. All rights reserved.en_US
dc.language.isoEnglishen_US
dc.source.titleJournal of Development Economicsen_US
dc.relation.isversionofhttp://dx.doi.org/10.1016/S0304-3878(99)00044-9en_US
dc.subjectApplied general equilibriumen_US
dc.subjectEndogenous growthen_US
dc.subjectStrategic trade policyen_US
dc.titleStrategic policies and growth: an applied model of R&D-driven endogenous growthen_US
dc.typeArticleen_US
dc.departmentDepartment of Economicsen_US
dc.departmentDepartment of International Relationsen_US
dc.citation.spage343en_US
dc.citation.epage380en_US
dc.citation.volumeNumber60en_US
dc.citation.issueNumber2en_US
dc.identifier.doi10.1016/S0304-3878(99)00044-9en_US
dc.publisherElsevier BVen_US
dc.identifier.eissn1872-6089


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