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In this paper, we develop a multi-country open economy extension of the famous Big Push model for a closed economy by Murphy et al. (1989). We show under which conditions the global economy in our model is caught in a poverty trap, characterised by a low-income equilibrium from which an escape...
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the effects of globalisation. In a benchmark case with identical costs of entering domestic and foreign markets, there are …
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has the same effect, and this result holds in the presence of nontraded goods. We conclude that globalisation, a process …
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whether globalisation makes it easier or harder for a country to escape from a poverty trap. Our model gives a definite answer … to this question: Globalisation makes it harder to escape from a poverty trap since the adoption of the modern technology …
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