New growth models exhibit "scale effects," meaning that variations in the levels of key variables exert permanent influences on growth rates. Such predictions run counter to recent empirical evidence. This paper extends a general non-scale model to the open economy. With complete capital...

This paper develops a two-country dynamic general equilibrium model with endogenous growth to analyze the effects of international trade on steady-state growth. The two countries differ both in preferences and in technologies. It is shown first that both countries cannot simultaneously...

In this paper, we use a multisector specific-factors model with sector-specific capital and two mobile factors, skilled and unskilled labor, to examine the effects of trade, technology, and factor endowments on the skill premium in US manufacturing industries. Based on this model and data for...