남북무역과 정부정책이 혁신과 모방에 미치는 효과

Abstract

Grossman and Helpman (1991b)’s product cycle model focuses on the analysis of only the steady states (wide gap and narrow gap equilibrium) mainly due to analytical intractability of the model, and thus cannot explain the dynamic change in the wage gap between the North and the South. We develop a two-period version of Grossman and Helpman (1991b) and show that wage convergence between the North and the South takes place in our model, which is consistent with stylized facts. Our model also carries the following policy implications: 1) the subsidy on imitation in the South is effective in promoting imitation in the wide gap case while the effect is ambiguous in the narrow gap case; 2) the production subsidy is not an effective policy tool to enhance the level of imitation.