کد مقاله | کد نشریه | سال انتشار | مقاله انگلیسی | نسخه تمام متن |
---|---|---|---|---|
5066359 | 1476777 | 2017 | 16 صفحه PDF | دانلود رایگان |
![عکس صفحه اول مقاله: Time-intensive R&D and unbalanced trade Time-intensive R&D and unbalanced trade](/preview/png/5066359.png)
This paper highlights a novel mechanism that generates global imbalances. It develops a general equilibrium trade model with one of two countries having a comparative advantage in a sector whose production is characterized by (i) rapid, anticipated demand growth and (ii) large up-front R&D costs. International funding of the accruing R&D costs generates capital inflows in the R&D stage, which are balanced by subsequent outflows. Importantly, sector-level growth does not generate growth differentials between countries, typically regarded as rationales of global imbalances. Additionally, it is shown that a trade surplus can coincide with appreciations of the real exchange rate. I argue that Switzerland's trade surplus, which was driven to record heights during 2010-2014 by pharmaceutical exports, exemplifies this mechanism. Calibrating the model to Swiss trade flows underpins this argument.
Journal: European Economic Review - Volume 91, January 2017, Pages 229-244