Literature on environment and endogenous growth suggests that sustainable growth critically depends on technological innovations. In this paper, technological progress takes the form of an expansion in the variety of inputs. In a first scenario, a closed economy is endowed with a renewable...

This paper develops a trade model for a technologically leading country and a developing country that exploits a renewable natural resource. Technology diffuses from the technological leader to the developing country through foreign direct investment (FDI). Alternatively, innovative activities...