This paper studies how the effect of trade openness on economic growth depends on complementary reforms that help a country take advantage of international competition. This issue is illustrated with a simple Harris-Todaro type of model where output gains after trade liberalization depend on the...

A reduction in capital tax rates generates substantial dynamic responses within the framework of the standard neoclassical growth model. The short-run revenue loss after a tax cut is partly — or, depending on parameter values, even completely — offset by growth in the long-run, due to the...

In this model of North and South economies, growth is driven by Schumpeterian R&D and by accumulation of two types of human capital, versatile and specialized. The former is school intensive while the latter is on-the-job-training intensive. Growth is endogenous and independent of scale effects....

In the center of this paper there are two questions: ’Is it true that globalization is to a crucial degree dependant on technical innovation?’ and ’Can globalization be regarded as a determinant of economic growth and technical progress?’. To answer these questions the paper provides a...

Are open economies characterized by superior economic performance in the long-run? This paper revisits this important question from the point of the view of unified growth theory. Contrary to other recent attempts to study this question, the paper considers two distinct channels through which...

This paper analyzes Walrasian general equilibrium systems and calculates the static and dynamic solutions for competitive market equilibria. The Walrasian framework encompasses the basic multi-sector growth (MSG) models with neoclassical production technologies in N sectors (industries). The...

This paper presents a two-countries dynamic model of Schumpeterian growth with two innovative R&D sectors in each country: a vertical R&D sector that improves the quality of existing differentiated products and a horizontal R&D sector that creates new differentiated products. The two countries...

Over the last two decades immigration policies in OECD economies have become increasingly selective and the rate of skilled migration from low income economies has risen markedly. This paper analyzes the theoretical implications of this shift in migration patterns for the growth and distribution...

Abstract I study the incentive that governments have to protect IPR in a trading world economy, focusing on the patent novelty requirement and its effect on growth an trade. I consider a world economy with ongoing innovation in two regions. The North is assumed to have a higher wage than the...

We study the incentive that governments have to protect IPR in a trading world economy, focusing on the patent novelty requirement and its effect on growth and trade. We consider a world economy with ongoing innovation in two regions. The North is assumed to have a higher wage than the South and...