We analyze recent contributions to growth theory based on the model of expanding variety of Romer [Romer, P. (1990 … international technology diffusion, trade, cross-country productivity differences, financial development and fluctuations. In many …

long-run growth analysis of the impact of openness to trade within a multi-country framework. Openness affects growth by …-economy exogenous growth model into a multi-country, open-economy endogenous growth model. Nevertheless, the conditional convergence and … identical growth predictions of the neoclassical model are preserved here with the extent of trade now playing a role in …

-country trade. Both of these sources develop from the New Economic Geography models, while the engine of the growth process is …The literature on growth theory lacks a precise sense of why there are interactions and dependencies between countries …. Correspondingly, the spatial econometrics literature on growth empirics accounts for endogenous cross-country interactions, but lacks …

regardingRIRP which arises from open one-sector growth models, in which case steadystate trade balance and RIRP are irreconcilable … international trade in consumptiongoods alone may be sufficient for the equalization of real returns to physicalcapital across … conditions for the dynamic pathsof a cross-section of economies to exhibit FPE, and hence RIRP with trade balance,at all points …

According to New Growth Theory one can not rely on the convergence mechanisms inherent in traditional neoclassical … constant returns to scale models. Convergence as well as divergence is possible, in general, depending on the assumptions about … technology, factor mobility and ease of knowledge diffusion. The paper shows by a two-regions endogenous growth model under what …

-classical growth model with international trade in goods, that these two views can be reconciled. Natural inputs directly affect both … findings that point out that natural inputs are negatively related to growth. This paper shows, within a two-sector neo … long-run income and transitional growth. These two effects can be positive or negative depending on input elasticities …

Heckscher-Ohlin versions of the two-sector neoclassical growth model predict that late-blooming nations can remain … permanently poorer. This is an important result that warns us about the dangers of international trade. We show, however, that the …

According to New Growth Theory one can not rely on the convergence mechanisms inherent in traditional neoclassical … constant returns to scale models. Convergence as well as divergence is possible, in general, depending on the assumptions about … technology, factor mobility and ease of knowledge diffusion. The paper shows by a two-regions endogenous growth model under what …

The neoclassical growth model accords with empirical evidence on convergence if capital is viewed broadly to include … convergence than those observed empirically, however. We show that the open economy model conforms with the evidence if an economy …

productive factor in the poorer countries, opening these countries to trade can stop convergence and even cause divergence. We …-Ohlin trade model and a two-sector growth model - with infinitely lived consumers where international borrowing and lending are …In models in which convergence in income levels across closed countries is driven by faster accumulation of a …