| Abstract | For a long time, the effects of trade on technological progress and economic growth have been aroused wide concern of the economist. To explain it, the power of the existing theory, however, is very weak, and the conclusions of many empirical studies are different and controversial. In this study, based on the new growth theory, knowledge will be abstracted from the trade activities, and a knowledge trade equation will be introduced to build a mathematical model. Then, the comparative static analysis methods will be used to analyze the influence of different trade policies on the model results. This fills the blank of the new growth theory, which has not modeled trade, and, to a certain extent, enhances the explanatory power of the theory on the above effects. Conclusions show that trade is the cause of the technological progress and economic growth but couldn't make the catching-up strategy of technology importer come true. In addition, the trade protection policies will block technology advance and reduce the economic welfare. |