Econometrica, Vol. 70, No. 5 (September, 2002), 1741-1779

TECHNOLOGY, GEOGRAPHY, AND TRADE

BY JONATHAN EATON AND SAMUEL KORTUM1

We develop a Ricardian trade model that incorporates realistic geographic features into general equilibrium. It delivers simple structural equations for bilateral trade with parameters relating to absolute advantage, to comparative advantage (promoting trade), and to geographic barriers (resisting it). We estimate the parameters with data on bilateraltrade in manufactures, prices, and geography from 19 OECD countries in 1990. We use the model to explore various issues such as the gains from trade, the role of trade in spreading the benefits of new technology, and the effects of tariff reduction.

KEYWORDS: Trade, gravity, technology, geography, research, integration, bilateral.

Eaton和Kortum开发了一个把现实地理特征纳入一般均衡的李嘉图贸易模型。它为双边贸易提供了简单的结构方程，其参数与绝对优势、相对优势(促进贸易)，以及地理障碍(抵制它)等有关。用1990年19个经合组织国家的制造业、价格和地理贸易双边数据估计参数。使用模型探讨各种问题，如贸易的收益，贸易在传播新技术中的作用的、关税削减的影响。