RU Mendoza, TRADE-INDUCED LEARNING AND INDUSTRIAL CATCH-UP, The ECONOMIC JOURNAL V120 (2010) F313-F350. doi: 10.1111/j.1468-0297.2010.02379.x
This article develops a model of trade-induced learning whereby both domestic and cross-border learning externalities could drive long-run growth. This framework is used to synthesise the emerging empirical evidence, revealing how trade-induced learning could underpin the mechanics behind trade and growth in at least three important ways: first, trading matters, as firms might be able to increase their productivity due to export and import linkages with buyers and suppliers; second, whom you trade with matters, as richer and more technologically advanced trading partners offer more scope for trade-induced learning; and third, what products you trade matters.
RU Mendoza is with the Asian Institute of Management.