We extend an open economy Ramsey model to include the technology gap to the world technology frontier. The setting is a middle income country with productivity growth driven by technology adoption and foreign capital goods stimulating spillover and catching up. The interaction of technology...

Trade openness influences the wage structure via technology adoption in middle income countries. Given the econometric challenges of handling endogenous trade and technology interaction, we offer an alternative quantification based on calibration of a general equilibrium model. We expand the...

The relationship between foreign trade openness and growth is a challenge for economic analysis. Econometric approaches struggle with endogeneity of foreign trade and trade policy and endogenous interaction between investment and productivity. We offer an alternative route to identification and...

Accumulation of education and geographic concentration of educated people in cities are expected to generate urban income growth. New economic geography predicts income divergence across regions. We investigate the dynamic process of accumulating tertiary education and regional income growth in...

R<sc>attsø</sc> J. and S<sc>tokke</sc> H. E. Population divergence and income convergence: regional distribution dynamics for Norway, <italic>Regional Studies</italic>. Regional population divergence follows from in-migration to cities with high income levels. The dynamic relationship between population and income is...

The existence of agglomeration economies is well established. We study dynamic agglomeration effects and expect regional income divergence when people move from the periphery to cities. We use distribution analysis, Kernel density functions and first order Markov chains, to investigate whether...