effects of its own investment, while treating other countries' investments as given. Average world growth is endogenous, as is … given country follow a Nelson-Phelps specification. Thus, they derive from past investments in the country itself and …, through a spillover (or catch-up) term, from past investments in other countries. We then construct a stochastic dynamic …

strategic investments in this industry. Our measure of market size have no - or only very small - effects. …