- 著者
-
XING Yuqing
ZHANG Bo
- 出版者
- GRIPS Policy Research Center
- 雑誌
- GRIPS Discussion Papers
- 巻号頁・発行日
- vol.18-10, 2018-09
This paper analyzes how the technology progress of the South country affects the welfare of the North country in a free trade world. Using the standard Ricardian model of the North-South trade, we show that, import biased technological progress of the South will undermine the welfare of the North, once the cumulative technological progress of the South exceeds a threshold. The relative population size of the South to North affects the threshold. Generally, a relatively larger South country has a lower threshold and the technological difference between the two countries remains even beyond the threshold. To a certain extent, the findings of the paper offer an theoretical explanation about the concerns of rising China in an integrated world economy.