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Autarky

About: Autarky is a research topic. Over the lifetime, 1210 publications have been published within this topic receiving 26721 citations. The topic is also known as: closed economy.


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TL;DR: In this paper, the authors investigate the dynamic effects of international trade on an LDC and a DC, the latter distinguished by a higher initial level of knowledge, under autarky and free trade, and find that under free trade the LDC experiences dynamic losses from trade, whilst the DC experiences dynamic gains.
Abstract: Using an endogenous growth model in which learning by doing, although bounded in each good, exhibits spillovers across goods, this paper investigates the dynamic effects of international trade. Examining an LDC and a DC, the latter distinguished by a higher initial level of knowledge, under autarky and free trade, I find that under free trade the LDC (DC) experiences rates of technical progress and GOP growth less than or equal (greater than or equal) to those enjoyed under autarky. Unless the LDC's population is several orders of magnitude greater than that of the DC and the initial technical gap between the two economies is not large, the LDC will be unable to catch up with its trading partner. Hence, in terms of technical progress and growth, the LDC experiences dynamic losses from trade, whilst the DC experiences dynamic gains. However, since technical progress abroad can improve welfare at home, LDC consumers may enjoy - higher intertemporal utility along the free trade path. In the case of DC consumers, as long as their economy is not overtaken by the LDC they will enjoy both more rapid technical progress and the traditional static gains from trade, and hence experience an unambiguous improvement in intertemporal welfare.

1,206 citations

Journal ArticleDOI
TL;DR: In this paper, the authors investigated the dynamic effects of international trade and found that, under free trade, the LDC experienced rates of technical progress and GDP growth less than or equal to those enjoyed under autarky.
Abstract: Using an endogenous growth model in which learning by doing, although bounded in each good, exhibits spillovers across goods, this paper investigates the dynamic effects of international trade. Examining the interaction of a LDC and a DC, the latter distinguished by a higher initial level of knowledge, the author finds that, under free trade, the LDC (DC) experiences rates of technical progress and GDP growth less than or equal (greater than or equal to) those enjoyed under autarky. Since both countries enjoy the usual static gains from trade, free trade may, nevertheless, improve the welfare of LDC consumers.

1,087 citations

Journal ArticleDOI
TL;DR: In this paper, the authors model the invention of new technologies and their diffusion across countries and derive the direction and magnitude of the international diffusion of technology from data on international patenting, productivity, and research.
Abstract: We model the invention of new technologies and their diffusion across countries. In our model all countries grow at the same steady-state rate, with each country's productivity ranking determined by how rapidly it adopts ideas. Research effort is determined by how much ideas earn at home and abroad. Patents affect the return to ideas. We relate the decision to patent an invention internationally to the cost of patenting in a country and to the expected value of patent protection in that country. We can thus infer the direction and magnitude of the international diffusion of technology from data on international patenting, productivity, and research. We fit the model to data from the five leading research economies. A rough summary of our findings is that the world lies about two-thirds of the way from an extreme of technological autarky to an extreme of free trade in ideas. Research performed abroad is about two-thirds as potent as domestic research. Together the United States and Japan drive at least two-thirds of the growth in each of the countries in our sample.

860 citations

Posted Content
TL;DR: This paper developed a new framework for examining the distributional consequences of international trade that incorporates firm and worker heterogeneity, search and matching frictions in the labor market, and screening of workers by firms.
Abstract: This paper develops a new framework for examining the distributional consequences of international trade that incorporates firm and worker heterogeneity, search and matching frictions in the labor market, and screening of workers by firms. Larger firms pay higher wages and exporters pay higher wages than non-exporters. The opening of trade enhances wage inequality and raises unemployment, but expected welfare gains are ensured if workers are risk neutral. And while wage inequality is larger in a trade equilibrium than in autarky, reductions of trade impediments can either raise or reduce wage inequality.

739 citations

Journal ArticleDOI
TL;DR: This article developed a new framework for examining the determinants of wage distributions that emphasizes within-industry reallocation, labor market frictions, and differences in workforce composition across firms.
Abstract: This paper develops a new framework for examining the determinants of wage distributions that emphasizes within-industry reallocation, labor market frictions, and differences in workforce composition across firms. More productive firms pay higher wages and exporting increases the wage paid by a firm with a given productivity. The opening of trade enhances wage inequality and can either raise or reduce unemployment. While wage inequality is higher in a trade equilibrium than in autarky, gradual trade liberalization first increases and later decreases inequality.

668 citations


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Performance
Metrics
No. of papers in the topic in previous years
YearPapers
202334
202262
202120
202035
201949
201837