Bitzer, Jurgen; Görg, Holger; Schröder, Philipp J.H. - Leverhulme Centre for Research on Globalisation and …
This paper investigates Samuelson's (JEP, 2004) argument that technical progress of the trade partner may hurt the home country. We illustrate this prospect in a simple Ricardian model for situations with outward knowledge spillovers. Within this framework Samuelson's Act II effects may occur....