Purpose This paper aims to examine whether integration of national markets fosters innovation in the technologically inferior country. Design/methodology/approach The authors examine a simple game theoretic framework where a technologically backward home firm and a technologically advanced...

Abstract This paper attempts to provide an explanation to the debate whether infrastructure development is more effective than direct cash transfer to reduce wage disparity between skilled and unskilled workers. We use a simple general equilibrium structure to argue that in presence of symmetric...