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We study the interaction of endogenous growth and Ricardian trade working solely through comparative advantage. The model is built to be consistent with several facts about technical progress, R&D activity, industrial organization, and trade. We obtain a full characterization of the transition...
Persistent link: https://www.econbiz.de/10013086174
Persistent link: https://www.econbiz.de/10012240980
We study the effects of trade on economic growth in a Schumpeterian framework. The model excludes scale effects and technology transfer, the two usual channels in the literature through which trade affects growth, leaving only comparative advantage. Comparative advantage and the trading pattern...
Persistent link: https://www.econbiz.de/10011123946
We construct and test a theory of how international trade and endogenous economic growth interact to affect the evolution of cross-country differences in GDP. The theory combines a second-generation endogenous growth model with a Ricardian model of trade. The driver of growth is technical...
Persistent link: https://www.econbiz.de/10011124013