Trade-induced technological change: Analyzing economic and environmental outcomes

Shunsuke Managi, Surender Kumar

Research output: Contribution to journalArticle

25 Citations (Scopus)

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.

Original languageEnglish
Pages (from-to)721-732
Number of pages12
JournalEconomic Modelling
Volume26
Issue number3
DOIs
Publication statusPublished - 2009 May 1

Keywords

  • Directional distance function
  • Environmental effects
  • Exogenous technological change
  • Total factor productivity
  • Trade-induced technological change

ASJC Scopus subject areas

  • Economics and Econometrics

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