The paper builds a theoretical model of endogenous growth motivated by the recent Indian paradox of an improving GDP growth rate in the face of unsatisfactory employment growth rate. The source of the problem is believed to be inadequate growth of manufacture for the absorption of unskilled or...

If all firms are well informed and rational, it is not possible for a country to be more efficient than all other countries in producing an y particular commodity. For if a country were uniformly more efficient than other countries, it would have an incentive to share its superio r technology...