Hirose, Kyoko; Yamamoto, Kazuhiro - Graduate School of Economics, Osaka University - 2005
A Grossman-Helpman-Romer-type endogenous-growth model is developed in this study. This model has two countries in which there are knowledge spillovers that are partially local. Owing to these spillovers, innovation cost in a particular country decreases as the number of firms locating in both...