Results

CEP discussion paper

The distributional consequences of trade: Evidence from the Grain Invasion

We examine the distributional consequences of trade using the New World Grain Invasion that occurred in the second half of the 19th century. We use a newly-created dataset on population, employment by sector, property va...Read more...

CEP discussion paper

Neighborhood effects: Evidence from wartime destruction in London

We use the German bombing of London during the Second World War as an exogenous source of variation to provide evidence on neighborhood effects. We construct a newly-digitized dataset at the level of individual buildings...Read more...

Journal article

American Economic Review:

When Tariffs Disrupt Global Supply Chains

We study unanticipated tariffs in a setting with firm-to-firm supply relationships. Firms conduct costly searches and negotiate with potential suppliers that pass a reservation level of match productivity. Global supply ...Read more...

Journal article

Journal of International Economics: Forthcoming

Accounting for trade patterns

We develop a quantitative framework for decomposing trade patterns. We derive price indexes that determine comparative advantage and the aggregate cost of living. If firms and products are imperfect substitutes, we show ...Read more...

Blog

Vox EU:

Neoclassical growth in an interdependent world

The neoclassical growth model remains a crucial reference point for economists thinking about cross-country income dynamics, but it imposes strong assumptions about goods and capital markets. Benny Kleinman, Ernest Liu, ...Read more...

CEP discussion paper

Neoclassical growth in an interdependent world

We generalize the closed-economy neoclassical growth model (CNGM) to allow for costly goods trade and capital flows with imperfect substitutability between countries. We develop a tractable, multi-country, quantitative m...Read more...

Blog

LSE British Politics and Policy:

Slavery and Britain's industrial revolution

To what extent did the wealth derived from slavery contribute to Europe's economic growth? Stephan Heblich, Stephen Redding and Hans-Joachim Voth find that slaveholding areas of Britain were less agricultural, closer to ...Read more...

CEP occasional paper

The linear algebra of economic geography models

We provide sufficient statistics for nominal and real wage exposure to productivity shocks in a constant elasticity economic geography model. These exposure measures summarize the first-order general equilibrium elastici...Read more...

CentrePiece article

Slavery and Britain's industrial revolution

To what extent did the wealth derived from slavery contribute to Europe’s economic growth? Stephan Heblich, Stephen Redding and Hans-Joachim Voth find that slaveholding areas of Britain were less agricultural, closer to ...Read more...

Journal article

American Economic Review:

Globalization and pandemics

We provide theory and evidence on the relationship between globalization and pandemics. Business travel facilitates trade and travel leads to human interactions that transmit disease. Trade-motivated travel generates an ...Read more...

Journal article

Econometrica:

Dynamic spatial general equilibrium

We incorporate forward-looking capital accumulation into a dynamic discrete choice model of migration. We characterize the steady-state equilibrium; generalize existing dynamic exact-hat algebra techniques to incorporate...Read more...

Journal article

Journal of Economic Perspectives:

Quantitative urban models: from theory to data

Economic activity is highly unevenly distributed within cities, as reflected in the concentration of economic functions in specific locations, such as finance in the Square Mile in London. The extent to which this concen...Read more...

Blog

Vox EU:

Slavery and the British Industrial Revolution

To what extent the wealth derived from slavery contributed to Europe's economic growth has been a hotly debated question for more than two centuries. Most economists studying the question have looked at national aggregat...Read more...

CEP discussion paper

The economics of cities: from theory to data

Economic activity is highly unevenly distributed within cities, as reflected in the concentration of economic functions in specific locations, such as finance in the Square Mile in London. The extent to which this concen...Read more...

CEP discussion paper

Slavery and the British Industrial Revolution

Did overseas slave-holding by Britons accelerate the Industrial Revolution? We provide theory and evidence on the contribution of slave wealth to Britain's growth prior to 1835. We compare areas of Britain with high and ...Read more...

Blog

Vox EU:

Structural change within versus across firms: evidence from the US

One feature of the US economy over the last five decades has been the transition away from manufacturing towards services. This column takes a firm-level view of structural change from 1977-2019 to study these sectoral d...Read more...

CEP discussion paper

Structural change within versus across firms: evidence from the United States

We document the role of intangible capital in manufacturing firms' substantial contribution to non-manufacturing employment growth from 1977-2019. Exploiting data on firms' "auxiliary" establishments, we develop a novel ...Read more...

Journal article

Journal of Political Economy:

Trade, structural transformation, and development: evidence from Argentina 1869-1914

We provide new theory and evidence on the role of external and internal integration in structural transformation and economic development, using Argentina's integration into the world economy in the late nineteenth centu...Read more...

Journal article

Journal of Urban Economics:

JUE insight: How much does Covid-19 increase with mobility? Evidence from New York and four other US cities

How effective are restrictions on mobility in limiting COVID-19 spread? Using zip code data across five U.S. cities, we estimate that total cases per capita decrease by 19% for every ten percentage point fall in mobility...Read more...

Journal article

Economica:

Suburbanization in the USA, 1970-2010

The second half of the 20th century saw large-scale suburbanization in the USA, with the median share of residents who work in the county where they live falling from 87% to 71% between 1970 and 2000. We introduce a new ...Read more...

Blog

VoxEU:

Consumer city: evidence from smartphone data

Traditional theories emphasise production decisions and the commuting costs of workers in shaping the spatial concentration of economic activity in cities. However, much of urban travel is related to consumption of non-t...Read more...

CEP discussion paper

Dynamic spatial general equilibrium

We develop a dynamic spatial general equilibrium model with forward-looking investment and migration decisions. We characterize analytically the transition path of the spatial distribution of economic activity in respons...Read more...

Blog

Vox EU:

Trade and innovation

International trade is a key determinant of firm profitability and survival, so it is natural to expect it to influence both incentives to innovate and the rate of creative destruction. This column highlights four key me...Read more...

CEP discussion paper

Trade and innovation

Two central insights from the Schumpeterian approach to innovation and growth are that the pace of innovation is endogenously determined by the expectation of future profits and that growth is inherently a process of cre...Read more...

CEP discussion paper

Suburbanization in the United States 1970-2010

The second half of the twentieth century saw large-scale suburbanization in the United States, with the median share of residents who work in the same county where they live falling from 87 to 71 percent between 1970 and...Read more...

CEP discussion paper

Consumption access and agglomeration: evidence from smartphone data

We provide new theory and evidence on the role of consumption access in understanding the agglomeration of economic activity. We combine smartphone data that records user location every 5 minutes of the day with economic...Read more...

CentrePiece article

Globalisation and pandemics: surprising interactions

Pandemics are only possible because of international travel. But perhaps surprisingly, in the absence of social distancing, a more globalised country will not necessarily suffer a worse outbreak. Pol Antràs, Stephen Redd...Read more...

Journal article

The Quarterly Journal of Economics:

The making of the modern metropolis: evidence from London

Using newly constructed spatially disaggregated data for London from 1801 to 1921, we show that the invention of the steam railway led to the first large-scale separation of workplace and residence. We show that a class ...Read more...

Blog

LSE Covid-19 blog:

How do globalisation and pandemics interact? Surprising insights from a new model

Pandemics are only possible because of international travel. But – perhaps surprisingly – in the absence of social distancing a more globalised country will not necessarily suffer a worse outbreak. Pol Antràs (Harvard), ...Read more...

CEP discussion paper

Trade and geography

This paper reviews recent research on geography and trade. One of the key empirical findings over the last decade has been the role of geography in shaping the distributional consequences of trade. One of the major theor...Read more...

CEP discussion paper

Globalization and pandemics

We develop a model of human interaction to analyze the relationship between globalization and pandemics. Our framework provides joint microfoundations for the gravity equation for international trade and the Susceptible-...Read more...

Blog

LSE Business Review:

Productivity growth in one country affects the relative income and welfare of its trade partners

One of the most dramatic changes in the world economy over the past half century has been the emergence of China as a major force in world trade. A central question in international economics is the implications of such ...Read more...

CEP discussion paper

International friends and enemies

We develop sufficient statistics of countries’ bilateral income and welfare exposure to foreign productivity shocks that are exact for small shocks in the class of models with a constant trade elasticity. For large shock...Read more...

CEP discussion paper

Who's paying for the US tariffs? A longer-term perspective

Using data from 2018, a number of studies have found that recent U.S tariffs have been passed on entirely to U.S. importers and consumers. These results are surprising given that trade theory has long stressed that tarif...Read more...

Journal article

Quarterly Journal of Economics:

Measuring Aggregate Price Indices with Taste Shocks: Theory and Evidence for CES Preferences

We develop an approach to measuring the cost of living for CES preferences that treats demand shocks as taste shocks that are equivalent to price shocks. In the presence of relative taste shocks, the Sato-Vartia price in...Read more...

Journal article

Journal of Economic Perspectives:

The impact of the 2018 tariffs on prices and welfare

We examine conventional approaches to evaluating the economic impact of protectionist trade policies. We illustrate these conventional approaches by applying them to the tariffs introduced by the Trump administration dur...Read more...

Blog

LSE Business Review:

The 2018 trade war: consumers are paying a high price

Over the course of 2018, the Trump administration imposed import tariffs on approximately $283 billion of US imports, with rates ranging between 10 and 50 per cent. In response, US trading partners, especially China, ret...Read more...

CentrePiece article

The impact of the 2018 trade war on US prices and welfare

What has been happening to the US economy as a result of the Trump administration's 2018 round of import tariffs? Research by Mary Amiti, Stephen Redding and David Weinstein estimates the effects of this change in US tra...Read more...

Journal article

Journal of the European Economic Association:

Task specialization in U.S. Cities from 1880 to 2000

We develop a new methodology for quantifying the tasks undertaken within occupations using over 3,000 verbs from more than 12,000 occupational descriptions in the Dictionary of Occupational Titles (DOTs). Using micro dat...Read more...

CEP discussion paper

The impact of the 2018 trade war on US prices and welfare

This paper explores the impacts of the Trump administration’s trade policy on prices and welfare. Over the course of 2018, the U.S. experienced substantial increases in the prices of intermediates and final goods, dramat...Read more...

CentrePiece article

The making of the modern metropolis: evidence from London

Stephen Redding and colleagues examine how the introduction of steam railways shaped the emerging metropolitan area of London....Read more...

CentrePiece article

In brief... What the Berlin Wall can teach us about urban development

Award-winning CEP research considers what can be learned from the division and reunification of Berlin....Read more...

CEP discussion paper

Aggregation and the gravity equation

One of the most successful empirical relationships in international trade is the gravity equation, which relates bilateral trade flows between an origin and destination to bilateral trade frictions, origin characteristic...Read more...

CEP discussion paper

The making of the modern metropolis: evidence from London

Modern metropolitan areas involve large concentrations of economic activity and the transport of millions of people each day between their residence and workplace. We use the revolution in transport technology from the i...Read more...

Journal article

Journal of Economic Literature:

Global firms

Research in international trade has changed dramatically over the last twenty years, as attention has shifted from countries and industries towards the firms actually engaged in international trade. The now-standard hete...Read more...

CEP discussion paper

Aggregating from micro to macro patterns of trade

We develop a new framework for aggregating from micro to macro patterns of trade. We derive price indexes that determine comparative advantage across countries and sectors and the aggregate cost of living. If firms and p...Read more...

Journal article

Annual Review of Economics:

Quantitative spatial economics

The observed uneven distribution of economic activity across space is influenced by variation in exogenous geographical characteristics and endogenous interactions between agents in goods and factor markets. Until the pa...Read more...

Journal article

The Review of Economic Studies:

Trade and inequality: From theory to estimation

While neoclassical theory emphasizes the impact of trade on wage inequality between occupations and sectors, more recent theories of firm heterogeneity point to the impact of trade on wage dispersion within occupations a...Read more...

CEP discussion paper

Quantitative spatial economics

The observed uneven distribution of economic activity across space is influenced by variation in exogenous geographical characteristics and endogenous interactions between agents in goods and factor markets. Until recent...Read more...

CEP discussion paper

A unified approach to estimating demand and welfare

The measurement of price changes, economic welfare, and demand parameters is currently based on three disjoint approaches: macroeconomic models derived from time-invariant utility functions, microeconomic estimation base...Read more...

Journal article

The Quarterly Journal of Economics:

Quantifying the sources of firm heterogeneity

We develop and structurally estimate a model of heterogeneous multiproduct firms that can be used to decompose the firm-size distribution into the contributions of costs, "appeal" (quality or taste), markups, and product...Read more...

Journal article

Journal of International Economics:

Goods trade, factor mobility and welfare

We develop a quantitative spatial model that incorporates a rich geography of trade costs and labor mobility with heterogeneous worker preferences across locations. We provide comparative statics for the unique equilibri...Read more...

CEP discussion paper

Global firms

Research in international trade has changed dramatically over the last twenty years, as attention has shifted from countries and industries towards the firms actually engaged in international trade. The now-standard hete...Read more...

CEP discussion paper

Commuting, migration and local employment elasticities

Many changes in the economic environment are local, including policy changes and infrastructure investments. The effect of these changes depends crucially on the ability of factors to move in response. Therefore a key ob...Read more...

Journal article

Econometrica:

The economics of density: evidence from the Berlin Wall

This paper develops a quantitative model of internal city structure that features agglomeration and dispersion forces and an arbitrary number of heterogeneous city blocks. The model remains tractable and amenable to empi...Read more...

CEP discussion paper

What is 'firm heterogeneity' in trade models? The role of quality, scope, markups and cost

We estimate a structural model of heterogeneous multiproduct firms to examine the sources of firm heterogeneity emphasized in the recent trade and macro literatures. Using Nielsen barcode data on prices and sales, we est...Read more...

CEP discussion paper

Transportation costs and the spatial organization of economic activity

This paper surveys the theoretical and empirical literature on the relationship between the spatial distribution of economic activity and transportation costs. We develop a multi-region model of economic geography that w...Read more...

CEP discussion paper

External integration, structural transformation and economic development: evidence from Argentina

This paper uses the natural experiment of Argentina’s integration into world markets in the late-nineteenth century to provide evidence on the role of internal geography in shaping the effects of external integration. We...Read more...

CEP discussion paper

Missing gains from trade?

The theoretical result that there are welfare gains from trade is a central tenet of international economics. In a class of trade models that satisfy a 'gravity equation,' the welfare gains from trade can be computed usi...Read more...

CEP discussion paper

Firm Heterogeneity and Aggregate Welfare

We examine how firm heterogeneity influences aggregate welfare through endogenous firm selection. We consider a homogeneous firm model that is a special case of a heterogeneous firm model with a degenerate productivity d...Read more...

CEP discussion paper

Task Specialization in U.S. Cities from 1880-2000

We develop a new methodology for quantifying the tasks undertaken within occupations using 3,000 verbs from around 12,000 occupational descriptions in the Dictionary of Occupational Titles (DOTs). Using micro-data from t...Read more...

CEP discussion paper

Heterogeneous Firms and Trade

This paper reviews the new approach to international trade based on firm heterogeneity in differentiated product markets. This approach explains a variety of features exhibited in disaggregated trade data, including the ...Read more...

SERC/Urban and Spatial Programme Discussion Paper

The Economics of Density: Evidence from the Berlin Wall

This paper develops a quantitative model of city structure to separate agglomeration forces, dispersion forces and fundamentals as determinants of location choices. The model remains tractable and amenable to empirical a...Read more...

CEP discussion paper

The Economics of Density: Evidence from the Berlin Wall

This paper develops a quantitative model of city structure to separate agglomeration forces, dispersion forces and fundamentals as determinants of location choices. The model remains tractable and amenable to empirical a...Read more...

CEP discussion paper

Goods Trade, Factor Mobility and Welfare

This paper extends a recent class of quantitative models of international trade to incorporate factor mobility within countries. We present a model-based decomposition of the variance of economic activity into the contri...Read more...

CEP discussion paper

Trade and Inequality: From Theory to Estimation

While neoclassical theory emphasizes the impact of trade on wage inequality between occupations and sectors, more recent theories of firm heterogeneity point to the impact of trade on wage dispersion within occupations a...Read more...

CEP discussion paper

The Empirics of Firm Heterogeneity and International Trade

This paper reviews the empirical evidence on firm heterogeneity in international trade. A first wave of empirical findings from micro data on plants and firms proposed challenges for existing models of inter- national tr...Read more...

Journal article

Review of Economics and Statistics:

History and industry location: Evidence from German airports

A central prediction of a large class of theoretical models is that industry location is not uniquely determined by fundamentals. Despite the theoretical prominence of this idea, there is little systematic evidence in su...Read more...

CEP discussion paper

Trade and Labor Market Outcomes

This paper reviews a new framework for analyzing the interrelationship between inequality, unemployment, labor market frictions, and foreign trade. This framework emphasizes firm heterogeneity and search and matching fri...Read more...

CEP discussion paper

Theories of Heterogeneous Firms and Trade

This paper reviews the recent theoretical literature on heterogeneous firms and trade, which emphasizes firm selection into international markets and reallocations of resources across firms. We discuss the empirical chal...Read more...

CEP discussion paper

Intra-Firm Trade and Product Contractibility (Long Version)

This paper examines the determinants of intra-firm trade in U.S. imports using detailed countryproduct data. We create a new measure of product contractibility based on the degree of intermediation in international trade...Read more...

CEP discussion paper

Wholesalers and Retailers in U.S. Trade (Long Version)

International trade models typically assume that producers in one country trade directly with final consumers in another. In reality, of course, trade can involve long chains of potentially independent actors who move go...Read more...

CentrePiece article

In brief... Heterogeneous firms in international trade

Stephen Redding reports on a conference jointly organised by CEP's globalisation programme....Read more...

CEP discussion paper

Inequality and Unemployment in a Global Economy

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 o...Read more...

CEP discussion paper

The Empirics of New Economic Geography

Although a rich and extensive body of theoretical research on new economic geography has emerged, empirical research remains comparatively less well developed. This paper reviews the existing empirical literature on the ...Read more...

CEP discussion paper

The Margins of US Trade

Recent research in international trade emphasizes the importance of firms’ extensive margins for understanding overall patterns of trade as well as how firms respond to specific events such as trade liberalization. In th...Read more...

CEP discussion paper

Economic Geography: A Review of the Theoretical and Empirical Literature

This paper reviews the new economic geography literature, which accounts for the uneven distribution of economic activity across space in terms of a combination of love of variety preferences, increasing returns to scale...Read more...

CEP discussion paper

Urbanisation and Structural Transformation

This paper presents new evidence on urbanization using sub-county data for the United States from 1880-2000 and municipality data for Brazil from 1970-2000. We show that the two central stylized features of population gr...Read more...

CEP discussion paper

History and Industry Location: Evidence from German Airports

A central prediction of a large class of theoretical models is that industry location is not necessarily uniquely determined by fundamentals. In these models, historical accident or expectations determine which of severa...Read more...

CentrePiece article

In brief... Sharing the fruits of trade

One of CEP's core research themes is the impact of trade openness on countries, firms, regions, communities and sectors.Two recent studies confirm the gains from opening up trade - but recognise that addressing the uneve...Read more...

CEP discussion paper

Firms in International Trade

Despite the fact that importing and exporting are extremely rare firm activities, economists generally devote little attention to the role of firms when discussing international trade. This paper summarizes key differenc...Read more...

CEP discussion paper

Multi-Product Firms and Trade Liberalization

This paper develops a general equilibrium model of multi-product firms and analyzes their behavior during trade liberalization. Firm productivity in a given product is modeled as a combination of firm-level “ability” and...Read more...

CEP discussion paper

Multi-Product Firms and Product Switching

This paper examines the frequency, pervasiveness and determinants of product switching among U.S. manufacturing firms. We find that two-thirds of firms alter their mix of five-digit SIC products every five years, that on...Read more...

CEP discussion paper

The Unequal Effects of Liberalization: Evidence from Dismantling the License Raj in India

This paper investigates whether the effects, on registered manufacturing out- put, employment, entry and investment, of dismantling the .license raja system of central controls regulating entry and production activity in...Read more...

CEP discussion paper

Products and Productivity

Firms' decisions about which goods to produce are often made at a more disaggregate level than the data observed by empirical researchers. When products differ according to production technique or the way in which they e...Read more...

CEP discussion paper

Factor Price Equality and the Economies of the United States

We develop a methodology for identifying departures from relative factor price equality across regions that is valid under general assumptions about production, markets and factors. Application of this methodology to the...Read more...

CentrePiece article

Location, location, location

How important is access to markets as a driver of economic prosperity? In new research, Stephen Redding and Daniel Sturm address this question by analysing the post-war division of Germany and its impact on the border ci...Read more...

CEP discussion paper

The Costs of Remoteness: Evidence from German Division and Reunification

This paper exploits the division of Germany after the Second World War and the reunification of East and West Germany in 1990 as a natural experiment to provide evidence of the importance of market access for economic de...Read more...

CEP discussion paper

Foreign Ownership and Productivity: New Evidence from the Service Sector and the R&D Lab

This paper examines the relationship between foreign ownership and productivity, paying particular attention to two issues neglected in the existing literature – the role of multinationals in service sectors and the impo...Read more...

CEP discussion paper

Comparative Advantage and Heterogeneous Firms

This paper presents a model of international trade that features heterogeneous firms, relative endowment differences across countries, and consumer taste for variety. The paper demonstrates that firm reactions to trade l...Read more...

CEP discussion paper

Relative Wage Variation and Industry Location

Relative wages vary considerably across regions of the United Kingdom, with skill-abundant regions exhibiting lower skill premia than skill-scarce regions. This paper shows that the location of economic activity is corre...Read more...

Journal article

Journal of International Economics:

Economic geography and international inequality

This paper estimates a structural model of economic geography using cross-country data on per capita income, bilateral trade, and the relative price of manufacturing goods. We provide evidence that the geography of acces...Read more...

CEP discussion paper

Product Choice and Product Switching

This paper develops a model of endogenous product selection by firms. The theory is motivated by new evidence we present on the importance of product switching by U.S. manufacturers. Two-thirds of continuing firms change...Read more...

CentrePiece article

All is not equal

Theory suggests that market forces should bring the relative pay of skilled workers into line in different regions within a country. Andrew Bernard, Stephen Redding, Peter Schott and Helen Simpson show that this is not t...Read more...

CEP discussion paper

Productivity Convergence and Foreign Ownership at the Establishment Level

This paper investigates whether there is convergence in Total Factor Productivity towards the technological frontier at the establishment level. We find convergence to the frontier is statistically and quantitatively imp...Read more...

CEP discussion paper

Distance, Skill Deepening and Development: Will Peripheral Countries Ever Get Rich?

This paper models the relationship between countries' distance from global economic activity, endogenous investments in education, and economic development. Firms in remote locations pay greater trade costs on both expo...Read more...

CentrePiece article

Yawning gaps

Why has globalisation brought such large increases in exports to some countries and not to others? Stephen Redding and Anthony Venables look at the way internal geography and domestic institutions seem to be a large part...Read more...

CentrePiece article

Patterns of growth

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CEP discussion paper

Explaining Cross-Country Export Performance: International Linkages and Internal Geography

This paper investigates the determinants of countries' export performance looking in particular at the role of international product market linkages. We begin with a novel decomposition of the growth in countries' expo...Read more...

CEP discussion paper

Factor Price Equalization in the UK?

This paper develops a general test of factor price equalization that is robust to unobserved regional productivity differences, unobserved region- industry factor quality differences and variation in production technolog...Read more...

CEP discussion paper

Educational Attainment, Labour Market Institutions, and the Structure of Production

A key feature of OECD economic growth since the early 1970s has been the secular decline in manufacturing's share of GDP and the secular rise of service sectors. This paper examines the role played by relative prices, t...Read more...

CEP discussion paper

Measuring the Cost Effectiveness of an R&D Tax Credit for the UK

This paper investigates the economic impact of the government's proposed new UK R&D tax credit. We measure the benefit of the credit by the effect on value added in the short and long?run. This is simulated from existin...Read more...

CEP discussion paper

The Economic Geography of Trade, Production, and Income: A Survey of Empirics

This paper surveys the empirical literature on the economic geography of trade flows, factor prices, and the location of production. The discussion is structured around the empirical predictions of a canonical theoretica...Read more...

CEP discussion paper

Factor Endowments and Production in European Regions

This paper analyses patterns of production across 14 industries in 45 regions from 7 European countries since 1975. We estimate a structural equation derived directly from Heckscher-Ohlin theory that relates an industry'...Read more...

CEP discussion paper

Economic Geography and International Inequality

This paper estimates a structural model of economic geography using cross-country data on per capita income, bilateral trade, and the relative price of manufacturing goods. More than 70% of the variation in per capita in...Read more...

CEP discussion paper

Mapping the Two Faces of R&D: Productivity Growth in a Panel of OECD Industries

Many writers have claimed that R&D has two 'faces'. In addition to the conventional role of stimulating innovation, R&D enhances technology transfer by improving the ability of firms to learn about advances in the lead...Read more...

CEP discussion paper

The Dynamics of International Specialisation

The theoretical literature on trade and growth suggests that comparative advantage is endogenous and evolves over time. However, most empirical analysis of international trade flows is essentially static in nature. This ...Read more...

CentrePiece article

Bridging the productivity gap

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CEP discussion paper

Productivity Growth, Convergence, and Trade in a Panel of Manufacturing Industries

This paper analyses the determinants of productivity growth in a panel of UK manufacturing industries. Two potential sources of productivity growth are identified: domestic innovation and technology transfer from a front...Read more...

CEP discussion paper

Path Dependence, Endogenous Innovation and Growth

We consider a macroeconomic model of endogenous innovation and growth, in which technological progress is path dependent and technological lock-in may occur. These features of technological change are emphasised in the h...Read more...