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Knowledge Dissemination, Capital Accumulation, Trade, and Endogenous Growth

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Author Info
Ben-David, D
Loewy, M-B

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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 will increase steady-state output in all countries while benefitting the liberalizaing country the most in terms of relative income levels.

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Publisher Info
Paper provided by Tel Aviv - the Sackler Institute of Economic Studies in its series Papers with number 3-97.

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Length: 23 pages
Date of creation: 1997
Date of revision:
Handle: RePEc:fth:teavsa:3-97

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Postal: Tel-Aviv University, The Sackler Institute of Economic Studies, Ramat Aviv 69 978 Tel-Aviv, Israel
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Web page: http://econ.tau.ac.il/
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Related research
Keywords: ECONOMIC MODELS ; ECONOMIC GROWTH ; TRADE;

Other versions of this item:

Find related papers by JEL classification:
E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical
F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
O42 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Monetary Growth Models

Cited by:
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  1. Dan Ben-David & Michael B. Loewy, 1997. "Free Trade, Growth, and Convergence," NBER Working Papers 6095, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  2. 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. [Downloadable!] (restricted)
  3. 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. [Downloadable!]
  4. Jolly, Curtis M. & Bayard, Budry & Ligeon, Carel & Keelfe, Alison, 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. [Downloadable!]
  5. 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). [Downloadable!]
  6. Sergio 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. [Downloadable!]
  7. Caselli, Mauro, 2009. "Does wealth inequality reduce the gains from trade?," MPRA Paper 15329, University Library of Munich, Germany. [Downloadable!]
  8. 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. [Downloadable!]
  9. 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. [Downloadable!] (restricted)
  10. Teresa Cyrus, 2004. "Does convergence cause trade, or does trade cause convergence?," Journal of International Trade & Economic Development, Taylor and Francis Journals, vol. 13(4), pages 397-418, December. [Downloadable!] (restricted)
  11. Teemu Haukioja & Jarmo Hahl, 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. [Downloadable!]
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