We use a specific-factor model to examine the conditions under which policy makers are able to increase aggregate production in high- tech goods by production or R&D-subsidies in the short and long-run.

The paper demonstrates how trade between developing countries can cause the divergence of long-run growth among these countries. The model describes two symmetric countries trading with each other and the industrial rest of the world. Bilateral trade occurs at any moment if the countries have...

Empirical studies of the relation between government size and economic growth come to widely different conclusions. In part this may reflect the fact that many studies report regressions that contain severe multicollinearity, heteroscedasticity, simultaneity and other specification problems....

The purpose of this papers is confined to illuminating the aspect: Has Sewedish economic growth been slow relative to other industrialised countries in recent decades, i.e. is Sweden lagging behind

FDI has received surprisingly little attention in theoretical and empirical work on openness and growth. This paper presents a theoretical growth model where MNCs directly affect the endogenous growth rate via technological spillovers. This is novel since other endogenous growth models with...

The search for growth-promoting policies is found to demand knowledge of how growth depends upon actions of entrepreneurs and how these actions depend upon the prevailing institutions. While institutions have extensively been examined for their influences upon the freedoms and the incentives of...

In a recent review article Jonas Agell, Thomas Lindh and Henry Ohlsson (1997) claim that theoretical and empirical evidence does not allow any conclusion on whether there is a relationship between the rate of economic growth and the size of the public sector. They illustrate their conclusion...