Góes, Carlos; Bekkers, Eddy - 2022 - Manuscript date: 10 June 2022
persistent geopolitical conflicts on trade, technological innovation, and economic growth. In conventional trade models the … welfare costs of such conflicts are modest. We build a multi-sector multi-region general equilibrium model with dynamic sector …-specific knowledge diffusion, which magnifies welfare losses of trade conflicts. Idea diffusion is mediated by the input-output structure …