This paper studies the patterns of trade and the incentives to innovate in an unequal global economy. We introduce non-homothetic preferences in a general-equilibrium model of endogenous growth and international trade between two countries, and argue that the effects of market integration on the...

In the context of exports expansion, we want to evaluate the ability of natural resource-abundant countries to reduce their dependence on natural resource exploitation in the long run. Specifically, we measure exports diversification in Chile and Norway in order to measure how they responded to...