Focusing on technology spillover from foreign direct investment (FDI) inflows, this paper investigates the welfare implications of financial integration. Calibrations of a neoclassical growth model with international technology diffusion show that when technology catch-up due to FDI inflows is...

Creation and Transfer of Knowledge Institutions and Incentives¤Is knowledge an economic good? Which are the characteristics of the institutions regulating the production and diffusion of knowledge? Cumulation of knowledge is a key determinant of economic growth, but only recently knowledge...