In the past decade, contributors to the endogenous growth literature have identified a variety of ways that trade policy might affect long run growth. Among these, Lucas (1993) has argued that the mechanisms emphasized by Krugman (1987), Stokey (1988 and 1991) and Young (1991) provide an...

There is increasing evidence that the interaction between shocks and labour market institutions is crucial to understanding the dynamics of employment. In this paper, we show that the inclusion of labour adjustment costs in a trade model affects the impact of exchange rate movements on...

The paper examines the relation between industrial mix and regional productivity growth. For this purpose, a dynamic model of the open economy with differentiated sectoral knowledge formation and incomplete interregional knowledge diffusion is constructed. The theoretical framework is first used...