We construct a model of growth based on endogenous technological change in a small, open economy. Entrepreneurs develop new intermediate products whenever the present value of potential profits exceeds the cost of R&D. Diversity of intermediates contributes to total factor productivity in the...

We construct a model of growth based on endogenous technological change in a small, open economy. Entrepreneurs develop new intermediate products whenever the present value of potential profits exceeds the cost of R&D. Diversity of intermediates contributes to total factor productivity in the...

This paper develops a two-sector non-scale growth model and investigates the relationship between international trade, growth, and industrialization. It is shown that the counterfactual prediction of new growth theories regarding a positive effect of population growth on the growth rate of per...