Chu, Angus C. and Cozzi, Guido and Furukawa, Yuichi and Liao, Chih-Hsing (2013): Inflation and Innovation in a Schumpeterian Economy with North-South Technology Transfer.
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Abstract
This study analyzes how inflation affects innovation and international technology transfer via cash-in-advance constraints on R&D. We consider a North-South quality-ladder model that features innovative Northern R&D and adaptive Southern R&D. We find that higher Southern inflation causes a permanent decrease in technology transfer, a permanent increase in the North-South wage gap, and a temporary decrease in the Northern innovation rate. Higher Northern inflation causes a temporary decrease in the Northern innovation rate, a permanent decrease in the North-South wage gap, and ambiguous effects on technology transfer. Finally, we calibrate the model to China-US data to perform a quantitative analysis.
Item Type: | MPRA Paper |
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Original Title: | Inflation and Innovation in a Schumpeterian Economy with North-South Technology Transfer |
Language: | English |
Keywords: | inflation, economic growth, R&D, North-South product cycles, FDI |
Subjects: | E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F43 - Economic Growth of Open Economies O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights |
Item ID: | 83076 |
Depositing User: | Prof. Angus C. Chu |
Date Deposited: | 10 Dec 2017 09:01 |
Last Modified: | 27 Sep 2019 07:49 |
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URI: | https://mpra.ub.uni-muenchen.de/id/eprint/83076 |
Available Versions of this Item
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A Schumpeterian Analysis of Monetary Policy, Innovation and North-South Technology Transfer. (deposited 12 Sep 2013 16:59)
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Innovation and North-South Technology Transfer in a Cash-in-Advance Economy. (deposited 07 Dec 2013 04:53)
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Inflation and Innovation in a Schumpeterian Economy with North-South Technology Transfer. (deposited 21 Dec 2016 15:44)
- Inflation and Innovation in a Schumpeterian Economy with North-South Technology Transfer. (deposited 10 Dec 2017 09:01) [Currently Displayed]
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Inflation and Innovation in a Schumpeterian Economy with North-South Technology Transfer. (deposited 21 Dec 2016 15:44)
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Innovation and North-South Technology Transfer in a Cash-in-Advance Economy. (deposited 07 Dec 2013 04:53)