Chong, Alberto; Zanforlin, L. - International Monetary Fund (IMF) - 2000
This paper extends Grossman and Helpmanās seminal work (1991), and presents an endogenous growth model where innovations created in a high-tech sector may be assimilated or adapted by a low-tech sector. Applying a simple Heckscher-Ohlin framework, the effects of technological diffusion are...