Cusolito, Ana P.Lederman, Daniel2012-03-192012-03-192009-09-01https://hdl.handle.net/10986/4236Theories of international trade assume that all countries use similar and exogenous technologies in the production of any good. This paper relaxes this assumption. The marriage of literatures on biased technical change and trade yields a tractable theory, which predicts that differences in factor endowments and intellectual property rights bias technical change toward particular factor intensities, and thus unit factor input requirements can vary across economies. Using data on net exports of a single industry, computers, intellectual property rights and factor endowments for 73 countries during 1980-2000, the paper shows that once technological choices are considered, countries with different factor endowments can become net exporters of the same product.CC BY 3.0 IGOABSOLUTE ADVANTAGEBANK LENDINGCENTRAL PROCESSING UNITCENTRAL PROCESSING UNITSCODESCOMMODITIESCOMMODITYCOMPARATIVE ADVANTAGECOMPONENTSCOMPUTER INDUSTRYCOMPUTERSCOST FUNCTIONSDATA PROCESSINGDATA PROCESSING EQUIPMENTDIGITALDIGITAL DATAECONOMETRIC ANALYSESECONOMIC GROWTHELASTICITYELASTICITY OF SUBSTITUTIONELECTRICAL MACHINERYEMPLOYMENTEQUATIONSEQUILIBRIUMEQUIPMENTEXTERNALITIESFACTORS OF PRODUCTIONFIXED COSTGDPGLOBAL MARKETINNOVATIONINNOVATIONSINSTITUTIONAL FRAMEWORKSINSURANCEINTELLECTUAL PROPERTYINTELLECTUAL PROPERTY RIGHTSINTEREST RATESINTERNATIONAL COMPARISONSINTERNATIONAL TRADEINVENTIONLABOR FORCELABOR MARKETLABOR MARKETSLABOR ORGANIZATIONMACROECONOMICSMANUFACTURINGMANUFACTURING INDUSTRIESMARGINAL COSTMARGINAL COST OF PRODUCTIONMARGINAL PRODUCTMARKUPMEDIAMONOPOLISTIC COMPETITIONNATIONAL INCOMENET EXPORTSOPEN ECONOMIESOUTPUTSPCPER CAPITA INCOMEPOLITICAL ECONOMYPROCESSORSPRODUCT DIFFERENTIATIONPRODUCTION FUNCTIONPRODUCTION FUNCTIONSPRODUCTION TECHNIQUESPRODUCTIVITYPROPERTY RIGHTSR&DRESULTRESULTSSANSKILLED LABORSKILLED WORKERSSUPPLIERSTECHNOLOGICAL CHANGETOTAL FACTOR PRODUCTIVITYTRADE BALANCEUNSKILLED LABORUSESWAGESWEBWORLD TRADEWorld Bank10.1596/1813-9450-5043