Emerging economies may grow fast because there is a potential for catching-up. In this paper foreign knowledge spillovers raise productivity of R&D in the exposed sector. The higher the productivity gap the more profitable investment in R&D will be. As a result labor productivity in the...

Small, open developing economies in general, and small island developing states (SIDS) in particular, have specific macroeconomic characteristics due both to their openness and their small size. Small size means they can never have fully independent capital-intensive domestic economies, so to...

We build a semi-endogenous growth model for developing countries with non-rivalrous public factors, imported capital goods, and an export demand function. The model exhibits the three-way interaction between public and private investment and trade shown recently in the empirical literature. A...