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The impacts of trade liberalisation on technological §development are of outmost importance due to their §dynamic long-term effects on the economy. However, §this issue has sparked controversy. This book §reviews the arguments and organises them in two §propositions. The more optimistic one (mainly the §new growth theory views) focuses primarily on the §broadening of access to international up-to-date §sources. The more sceptical one points to the need §of firms in developing countries to achieve §indigenous capabilities in order to adopt available §technology and benefit from it, and questions the §ability of local firms to profit from their §innovative efforts when competing with imports from §technologically superior producers. Trade, it §argues, might threaten the success of firms in both §regards. This book is an attempt to weigh the §benefits under the first proposition against the §negative effects stemming from the second, by using §a Schumpeterian model of technological upgrading. §The theoretical arguments are illustrated with §statistics from Argentina during the 1990s.