This paper sets up a model to account for differences in total factor productivity due to differences in enforcement of contracts. Vertical specialization generates the need for intra-period credit, because final goods producers cannot pay their intermediate goods suppliers before they produce their final good. The paper shows that if there are enforcement problems, the capital distribution is ...

Intermediate goods are another produced factor of production, like capital. Simple examples suggest that the multiplier associated with intermediate goods can be substantial, even larger than the one resulting from physical capital accumulation. This paper evaluates this insight using a model in which N goods are produced using all of the other goods as intermediate inputs. Calibrating the mode...

We develop a dynamic model of intermediate goods trade in which the pattern and the extent of intermediate goods trade are endogenous. We consider a small open economy whose …nal good production employs an endogenous array of intermediate goods, from low technology (high cost) to high technology (low cost). The underlying intermediate goods technology evolves over time. We allow for endogenous ...

Background. The sports industry plays an important role in the progress of the economy in developed countries. The role of technology is remarkable in the enhancement of the economy. Objectives. The present study investigates the effects of technology spillover on the economic growth of Iran’s sports industry through the import of intermediate and capital goods for the period from 1...

This paper analyzes the effects of intermediate goods trade on the development of real wages in Central and Eastern European manufacturing. The empirical findings show that world exports in intermediate goods of the CEEC exhibit a negative impact on wages, and imports a positive one. Since 1993, intermediate goods trade between the EU and the CEEC accounted for an increase in wages being most p...