International technology spillovers refer to the spread of technologies to other countries, either directly or indirectly (e.g., through trade), so that producers in other countries gradually acquire these technologies as well.
To illustrate the international technology spillover, let us assume that there are two countries: country A and country B. Each country produces two products, X and Y. When there is no trade between the two countries, each country's production is determined by its own production technology and resource allocation, and country A has a comparative advantage in producing X, while country B has a comparative advantage in producing Y. If trade occurs between the two countries, the comparative advantage of each country is determined by its own production technology and resource allocation. If trade occurs between the two countries, according to the theory of "comparative advantage", country A will specialize in the production and export of X, while country B will specialize in the production and export of product Y. This is the initial equilibrium after trade occurs.
1. contagion effect
2、The dry school effect
3、Demonstration and training effect
4、Competition effect
