This paper provides a unified framework for quantifying the cross-country and cross-sector interactions among trade, innovation, knowledge diffusion. is used to study effect of trade liberalization in an endogenous growth model which comparative advantage stock are determined by innovation The calibrated match observed heterogeneity production, efficiency, spillovers. counterfactual analysis sh...

this paper tries to test the relationship between trade openness and economic growth in former soviet :union: countries after their independence in 1991. it has become an article of faith in most economic and political circles that opening up the economy to international trade will produce substantial benefits in terms of greater consumer choice and higher living standards. higher productivity ...

A substantial part of the economic growth literature suggests that historically, geographic features such as decreasing trade costs have improved not only output but also growth. However, this literature lacks an analytical motivation for lower trade barriers, and assumes their decrease to obtain exogenously and at no cost. This paper attempts to address the issue by investigating how endogenou...

This paper examines the impact of manufacturing import growth on agricultural productivity for a small open economy using a 2× 2 sector endogenous growth model. We show that the increase of import variety share in manufacturing, when there is no trade induced labor reallocation, drives the emergence of a sectoral productivity growth gap: productivity growth in agriculture is lower than in manuf...

Productive consumption enables the satisfaction of current needs and, at the same time, increases the productive potential of labour. Theoretical as well as empirical evidence suggests that productive consumption is primarily relevant to low-income countries. From the perspective of growth theory, the productive consumption hypothesis is of fundamental interest because it modifies the "harsh" i...

We show that even in the absence of diminishing returns in production and technological spillovers, international trade leads to a stable world income distribution. This is because specialization and trade introduce de facto diminishing returns: countries that accumulate capital faster than average experience declining export prices, depressing the rate of return to capital and discouraging fur...

This paper develops a two country endogenous growth model with accumulation of both physical and human capital. We establish the existence of two country balanced growth equilibria with physical and human capital growing at the same rate in which a static and dynamic version of the Heckscher-Ohlin hypothesis hold true. We also show the existence of unbalanced growth equilibria in which the stat...