in these tasks are designed to be used by skilled workers, productivity in the LDCs will be low. Even when all countries … factor productivity and output per worker. Our theory also suggests that productivity differences should be highest in medium … effect on the direction of technical change and on productivity differences …

likely to introduce institutions encouraging investment in regions that were previously poor. This institutional reversal …

leads to a stable world income distribution. This is because specialization and trade introduce de facto diminishing returns … cross-sectional behavior of the world economy is similar to that of existing exogenous growth models: Cross … exhibit conditional convergence as in the Solow-Ramsey model. The dispersion of the world income distribution is determined by …