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Knowledge Dissemination, Capital Accumulation, Trade, and Endogenous Growth

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  • Ben-David, Dan
  • Loewy, Michael B

Abstract

This paper preserves many of the primary features of the standard neoclassical framework while introducing some modifications that transform it into an open economy endogenous growth model with knowledge accumulation. The accumulation of knowledge is determined in part by the extent of knowledge spillovers from abroad, which in turn are affected by commercial policy that regulates the extent of trade between countries. The model predicts that trade liberalization (even if it is unilateral) will increase steady-state output growth in all countries while benefitting the liberalizing country the most in terms of relative income levels. Copyright 2000 by Oxford University Press.

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Bibliographic Info

Article provided by Oxford University Press in its journal Oxford Economic Papers.

Volume (Year): 52 (2000)
Issue (Month): 4 (October)
Pages: 637-50

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Handle: RePEc:oup:oxecpp:v:52:y:2000:i:4:p:637-50

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Cited by:
  1. O'Connell, Philip J. & Russell, Helen & FitzGerald, John, 2006. "Human Resources," Book Chapters, in: Morgenroth, Edgar (ed.), Ex-Ante Evaluation of the Investment Priorities for the National Development Plan 2007-2013 Economic and Social Research Institute (ESRI).
  2. Chad Stroomer & David E.A. Giles, 2003. "Income Convergence and trade Openness: Fuzzy Clustering and Time Series Evidence," Econometrics Working Papers 0304, Department of Economics, University of Victoria.
  3. Cowan, R. & Jonard, N., 2003. "The dynamics of collective invention," Journal of Economic Behavior & Organization, Elsevier, vol. 52(4), pages 513-532, December.
  4. Mauro Caselli, 2008. "Does wealth inequality reduce the gains from trade?," CSAE Working Paper Series 2008-30, Centre for the Study of African Economies, University of Oxford.
  5. Wolf-Heimo Grieben & Fuat Sener, 2012. "North-South Trade, Unemployment and Growth: What’s the Role of Labor Unions?," Working Paper Series of the Department of Economics, University of Konstanz 2012-06, Department of Economics, University of Konstanz.
  6. Morgenroth, Edgar & FitzGerald, John (ed.), 2006. "Ex-ante Evaluation of the Investment Priorities for the National Development Plan 2007-2013," Research Series, Economic and Social Research Institute (ESRI), number PRS59.
  7. Jolly, Curtis M. & Bayard, Budry & Ligeon, Carel & Keefe, Alison M., 2007. "Globalization Equity and Justice in Small Nation States," Farm and Business - The Journal of The Caribbean Agro-Economic Society, Caribbean Agro-Economic Society, vol. 7(1), June.
  8. Edgar Morgenroth, 2003. "What should Policy Makers Learn from Recent Advances in Growth Theory and New Economic Geography?," Papers WP150, Economic and Social Research Institute (ESRI).
  9. Fahey, Tony & Russell, Helen & FitzGerald, John, 2006. "Childcare," Book Chapters, in: Morgenroth, Edgar (ed.), Ex-Ante Evaluation of the Investment Priorities for the National Development Plan 2007-2013 Economic and Social Research Institute (ESRI).
  10. Wang, Ming-cheng & Fang, Chen-ray & Huang, Li-hsuan, 2009. "International knowledge spillovers and wage inequality in developing countries," Economic Modelling, Elsevier, vol. 26(6), pages 1208-1214, November.
  11. Lucas Bretschger & Hansjörg Schmidt, 1999. "Converging on the learning curve: Theory and application to German regional data," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 135(2), pages 261-279, June.
  12. Grieben, Wolf-Heimo & Sener, Fuat, 2009. "Globalization, rent protection institutions, and going alone in freeing trade," European Economic Review, Elsevier, vol. 53(8), pages 1042-1065, November.
  13. S. Lodde, 1999. "Nuova teoria della crescita e sviluppo locale: alcune possibili connessioni," Working Paper CRENoS 199916, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  14. Ignacio J. Carnicero, 2001. "Comercio y convergencia regional: un análisis sectorial del caso español," Investigaciones Economicas, Fundación SEPI, vol. 25(3), pages 603-624, September.
  15. Tate, Robert & Finlayson, Greg & MacWilliam, Leonard & Wiley, Miriam M. & Morgenroth, Edgar & FitzGerald, John, 2006. "Health," Book Chapters, in: Morgenroth, Edgar (ed.), Ex-Ante Evaluation of the Investment Priorities for the National Development Plan 2007-2013 Economic and Social Research Institute (ESRI).
  16. Dan Ben-David & Michael B. Loewy, 1997. "Free Trade, Growth, and Convergence," NBER Working Papers 6095, National Bureau of Economic Research, Inc.
  17. Lucas Bretschger, 2001. "On the predictability of knowledge formation: The tortuous link between regional specialization trade, and development," Journal of Economics, Springer, vol. 73(3), pages 247-274, October.
  18. Daniel Sakyi & Jose Villaverde & Adolfo Maza & Krishna Reddy Chittedieonardo, 2012. "Trade Openness, Growth and Development: Evidence from Heterogeneous Panel Cointegration Analysis for Middle-Income Countries," REVISTA CUADERNOS DE ECONOMÍA, UN - RCE - CID.
  19. Fahey, Tony & Scott, Susan & FitzGerald, John, 2006. "Sports and Arts," Book Chapters, in: Morgenroth, Edgar (ed.), Ex-Ante Evaluation of the Investment Priorities for the National Development Plan 2007-2013 Economic and Social Research Institute (ESRI).
  20. Haukioja, Teemu & Hahl, Jarmo, 2001. "The Emergence of the New Economy, and its Challenge to Financial Intermediation and Banking," Discussion Papers 772, The Research Institute of the Finnish Economy.

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