The literature on growth theory lacks a precise sense of why there are interactions and dependencies between countries. Correspondingly, the spatial econometrics literature on growth empirics accounts for endogenous cross-country interactions, but lacks crucial insights from economic theory as...

This paper constructs a North–South endogenous growth model to investigate how the organizational forms of final goods firms evolve. Initially, the final goods firms in the North obtain intermediate goods from Northern firms and produce in the North. When trade costs are sufficiently low, as...

This paper analyzes the mechanisms, other than market size, through which international trade of intermediate goods incorporating state-of-the-art technological knowledge affects accumulation of human capital and wage inequality in the North and South. Under North-South technological diffusion,...

In this model of North and South economies, growth is driven by Schumpeterian R&D and by accumulation of two types of human capital, versatile and specialized. The former is school intensive while the latter is on-the-job-training intensive. Growth is endogenous and independent of scale effects....

This research proposes that the geographical distance from the location of the pre-industrial technological frontier has a non-monotonic and persistent effect on development. While remoteness from this frontier diminished imitation, it fostered the emergence of a culture conducive to innovation...

In this paper, to investigate how an increase in the price of natural resources affects the level of technology, we develop an endogenous variety expansion model of a small open economy based on that of Grossman and Helpman (1991, Ch. 3). We conclude that an increase in the price of natural...

We study a dynamic general equilibrium model where innovation takes the form of the introduction new goods, whose production requires skilled workers. Innovation is followed by a costly process of standardization, whereby these new goods are adapted to be produced using unskilled labor. Our...

Utilising panel data for 14 East European transition economies, we find support for the hypothesis that a greater degree of export variety relative to the U.S. helps to explain relative per capita GDP levels. The empirical work relies upon some direct measures of product variety calculated from...

In this paper I present a North-South endogenous growth model in which the impact of globalization on international outsourcing and growth can be analyzed. In the model, the skilled-labor abundant North is the only innovator in the world. Globalization (a reduction in trade costs) leads to a...

In pre-industrial Europe, growth was driven by the expansion of trade, and the expansion of trade was driven by falling trading costs. This paper discusses the mechanisms linking these processes: profit-seeking behavior by merchants, changes in the organization of production, technological...