Are open economies characterized by superior economic performance in the long-run? This paper revisits this important question from the point of the view of unified growth theory. Contrary to other recent attempts to study this question, the paper considers two distinct channels through which...

This paper develops a dynamic general equilibrium model of North-South trade and economic growth in a world economy with a continuum of countries. Countries are different in research productivity. Innovation, imitation and the relative wage between countries are endogenously determined as well...

In the center of this paper there are two questions: ’Is it true that globalization is to a crucial degree dependant on technical innovation?’ and ’Can globalization be regarded as a determinant of economic growth and technical progress?’. To answer these questions the paper provides a...

This paper tries to understand the structural transformation in a global world. While employment and output have shifted out of the industrial sector and into services in the G7 countries, the majority of world manufacturing employment is now located in the developing countries of Asia,...

This paper views technical change as a labor-saving, but capital-using, mechanization process, whereby capital replaces labor; though within any given technique, factors have a limited ability to substitute one another. This is formalized by reinterpreting the “distribution-parameters” of a...

The paper analyzes the consequences of joining markets of government discount bonds between identical economies when, in each country, there exists a positive probability of the government to default. In autarky such economies of overlapping generations of consumers with capital accumulation...

We develop an overlapping generations model with asset and capital accumulation to analyze the interaction between the real economy and international asset markets. The world consists of two homogenous countries with an integrated asset market, which differ only in levels of their capital stock....

We consider a two-sector economy, where public infrastructure unevenly affects the productivity of the sectors. Private and public capital are produced with different technologies, and the sector producing the infrastructure is not benefiting from its services. The government provides both...

Growth accounting exercises point to aggregate TFP differences as the dominant source of the large cross-country income differences. In this paper, I ask which sectors account for the aggregate TFP gap between rich and poor countries. Data limitations for developing countries have led...

Despite the widely recognised importance of the manufacturing industry for successful development relatively few studies empirically investigate this sector in cross-country analysis. In this paper we attempt to fill this gap in the literature by investigating manufacturing production across a...