The possibility to outsource over the internet should revolutionize foreign outsourcing, especially for services (UNCTAD, 2004). Our model describes materials and services input allocation from domestic vs. foreign suppliers. Allocations change when firms outsource online due to access and...

This paper analyzes the impact of different individual skills and their economy-wide distribution among heterogenous entrepreneurs on a country's catching up-process to the world technology frontier (WTF). Highly skilled entrepreneurs qualify as either technological specialists or as broadly...

In this article we analyze the interdependent issues of urbanization, growth, and globalization by presenting key empirical facts and relevant underlying economic theories on each. We look more closely, but without providing a detailed formal analysis, at a model by Baldwin and Forslid (2000)...

This paper analyzes the growth impact of fiscal and institutional policies for alternative sizes of regions. The local government provides a public input that may be subject to relative congestion thus reducing its individual availability. Then private capital productivity is affected by the...

This paper investigates the consequences for government size, growth and welfare if a selfish bureaucracy provides a congested input. Alternative exogenous tax systems are introduced and numerical analyses are carried out. The welfare optimum is only met under very specific assumptions:...

This paper employs a dynamic framework to compare the effects of alternative government policies on convergence of industrialized economies to the technology frontier. The government's instruments include facilitating private investment and education policy. The latter enhances skills of...

This article investigates the contribution of local knowledge endowment to employment growth in nanotechnology firms. We exploit a unique data set focusing on firms operating in fields that apply nanotechnology. Our findings suggest that regions that offer knowledge can stimulate employment...