Innovation and Competitiveness: Mechanisms for Surmounting Trade Barriers in Global Market for Natural Resources
Onwuka, Kevin Odulukwe; Obi Kenneth O.

This paper examines how innovation and competitiveness can be mechanisms for surmounting trade barriers in global market for natural resources. As trade barriers range from tariffs and non-tariffs, we employ the Cobb- Douglas function that has labour augmented technology. The main finding from this function is that If the resource is managed such that it grows at the same rate as output, then the neoclassical steady-state will be g = g A . The output growth is equivalent to technology growth. The technology will transform the natural resource into products that are produced at reduced cost per unit. We also utilize the global market model to show the effect of innovation on competitiveness and trade barriers. As innovations make the country or the organisation producing with natural resources to produce at lower cost per unit, it gives them an added advantage to compete in global market and circumvent trade barriers in the natural resource market.

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