This paper constructs a model of growth based on Adam Smith's notions of specialization and extent of the market. We seek to explain the following stylized facts. 1) The share of household production in total output has fallen over time as the economy has grown. 2) Services as a percent of GDP...

Patent data provide a rich set of information which can be used for comparative studies and trend analysis. The paper presents a systematic overview of the most appropriate tools methodologies that are available for determining the technological specialization of countries. Such analysis...

We revisit the debate on the role of technological improvement and market share reallocation in determining aggregate productivity gains. Contrary to previous work that neglects dependencies between suppliers in global value chains, we explicitly account for input linkages that impact both...

The globalization and international fragmentation of production is considered to be a driving force behind the high productivity of world leading industries. The expansion of the world market and the concurrent increase in trade and foreign investment promote the division of labor and expand the...