Trade-induced technological change : analyzing economic and environmental outcomes

Managi, Shunsuke & Kumar, Surender (2009) Trade-induced technological change : analyzing economic and environmental outcomes. Economic Modelling, 26(3), pp. 721-732.

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Abstract

We analyze how changes in trade openness are related to induced technological innovations that are not only GDP increasing but also pollution saving. Our model includes by-products of carbon dioxide and sulfur dioxide emissions. We estimate a directional distance function for 76 countries over the period 1963-2000 to measure exogenous and trade-induced technological change. On average, we find substantial trade-induced technological progress, and its magnitude is about one third of the overall technological change. The trade-induced technological changes, however, are GDP reducing and pollution increasing. Empirically, we find that increased trade openness correlates to increased pollution.

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11 citations in Web of Science®

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ID Code: 75491
Item Type: Journal Article
Refereed: Yes
Keywords: Directional distance function; Environmental effects; Exogenous technological change; Total factor productivity; Trade-induced technological change
DOI: 10.1016/j.econmod.2009.02.002
ISSN: 0264-9993
Subjects: Australian and New Zealand Standard Research Classification > ECONOMICS (140000) > APPLIED ECONOMICS (140200)
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Current > Schools > School of Economics & Finance
Deposited On: 24 Aug 2014 22:36
Last Modified: 26 Aug 2014 02:40

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