What is the impact of movement towards free trade on output? Can this impact permanently affect output levels, and more importantly, will it have an impact on steady-state growth rates? This paper provides empirical evidence showing how countries have exhibited substantial increases in their...

A firm that introduces a new good enjoys monopoly profits for some initial period of time. What happens subsequently depends upon the relative strength of knowledge diffusion and increasing dominance. The first effect enhances challengers’ ability to develop the product, erodes the...

This Paper studies the effect of knowledge diffusion on the incentives for developed countries’ (DC) firms to undertake costly transfer of production knowledge of an input to their developing countries’ (LDC) suppliers whose costs of production vary inversely with their technological effort....

The theoretical framework presented here preserves many of the primary features of the standard neo-classical model, while introducing some modifications that transform it into an open economy endogenous growth model with knowledge accumulation. Knowledge accumulation is determined in part by...

This Paper develops a model of economic growth and activity locating endogenously on a 3-dimensional featureless global geography. The same economic forces influence simultaneously growth, convergence, and spatial agglomeration and clustering. Economic activity is not concentrated on discrete...

We use a Ricardo-Viner model to study the determinants of the supply of outmigration in developing countries in a model with heterogenous households. We assume that heterogeneity and migration costs prevent households from total migration. Data are calibrated to two archetypal developing...

This paper provides insights into the relationship between the substantial ageing of the European labour force, large migration movements, and individual labour mobility. First, qualitative predictions are derived using the theory of production with multiple inputs. Second, quantitative...

This paper argues that the theoretical foundations for the gravity equation are general, while the empirical performance of the gravity equation is specific to the type of goods examined. Most existing theory for the gravity equation depends on the assumption of differentiated goods. We show...

Development accounting exercises based on an aggregate production function find technology is biased in favour of a country's abundant production factors. We provide an explanation to this finding based on the Heckscher-Ohlin model. Countries trade and specialize in the industries that use...