Segerstrom, Paul S; Anant, T C A; Dinopoulos, Elias - In: American Economic Review 80 (1990) 5, pp. 1077-91
This paper presents a dynamic general equilibrium model of North-South trade in which research and development races between firms determine the rate of product innovation in the North. Tariffs designed to protect dying industries in the North from Southern competition reduce the steady-state...