I construct a two-country multisectoral model of capital accumulation, endogenous technological change, trade, and foreign direct investment, whose steady states explain the main features of globalization: (a) increased economic participation of transnational corporation (TNC) profits, (b)...

Democratic economics and improved governance can be guiding principles for the newly formed G20, representing two thirds of the world's population and 88 percent of the world's economy. A discussion of basic economic principles shows that for economies to work for the majorities it is necessary...

Technological creation and mass production are usually associated with large-scale production, while technological absorption is found more often in small-scale, competitive firms. Thus, the link between the innovative and absorptive sectors defines a technological and market power gradient that...

Liberalization unleashed a wave of globalization over the period 1980-2007, and the international sector experienced miracle growth. While profits rose to all time highs, global saving exceeded global investment. Long-term interest rates declined to very low levels. After a global housing...

Trade and investment liberalization policies put in place in the 1980's ushered in a new era of globalization and currently form the mainstay of global development policy. However, underdevelopment itself originated in the context of globalization in the nineteenth century. I first summarize the...

As technological change accelerates, and mass production encompasses more sectors, their inherent inefficiencies and inequities become more prevalent in the aggregate economy. The resulting mass market economy can be described as the combination of a large scale, innovative leading sector under...

The legacy of Adam Smith leads to a false confidence on the optimality of laissez faire policies for the global market economy. Instead, the polarized character of current globalization deeply affects both developed and underdeveloped economies. Current globalization is characterized by factor...

We introduce imperfect creditor protection in a multi-country version of Schumpeterian growth theory with technology transfer. The theory predicts that the growth rate of any country with more than some critical level of financial development will converge to the growth rate of the world...

We face a public goods challenge spanning urgent environmental, economic and social problems on a national and global scale. The question arises, what is the best way to produce public goods in a market economy setting? Their under-provision is due not only to a lack of political will, but to...