Sustained Comparative Advantage and Semi-Endogenous Growth

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Sustained Comparative Advantage and Semi-Endogenous Growth

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Petsas, Iordanis

Abstract

This paper constructs a two-country (Home and Foreign) general equilibrium model of Schumpeterian growth without scale effects. The scale effects property is removed by introducing a distinct specification in the knowledge production function which generates semi-endogenous growth. In this model of semi-endogenous growth, an increase in the rate of population growth rate raises Home’s relative wage and lowers its range of goods exported to Foreign. An increase in the size of innovations increases Home’s relative wage but with an ambiguous effect on its comparative advantage. The model generates a unique steady-state equilibrium in which there is complete specialization in both goods and R&D production within each country.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 14297.

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Date of creation: Jan 2009
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Handle: RePEc:pra:mprapa:14297

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Find related papers by JEL classification:
F0 - International Economics - - General
O30 - Economic Development, Technological Change, and Growth - - Technological Change - - - General
O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General
O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

This paper has been announced in the following NEP Reports:

NEP-ALL-2009-04-05 (All new papers)
NEP-DGE-2009-04-05 (Dynamic General Equilibrium)
NEP-INT-2009-04-05 (International Trade)

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Samuel S. Kortum, 1997. "Research, Patenting, and Technological Change," Econometrica, Econometric Society, vol. 65(6), pages 1389-1420, November.
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Other versions:
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Other versions:
- Elias Dinopoulos & Constantinos Syropoulos, 2004. "Globalization, Factor Endowments,and Scale-Invariant Growth," Working Papers 0409, Florida International University, Department of Economics. [Downloadable!]
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Other versions:
- Taylor, M.S., 1992. ""Quality Ladders" and Ricardian Trade," UBC Departmental Archives 92-19, UBC Department of Economics.
Grossman, Gene M & Helpman, Elhanan, 1991. "Quality Ladders and Product Cycles," The Quarterly Journal of Economics, MIT Press, vol. 106(2), pages 557-86, May. [Downloadable!] (restricted)
Other versions:
- Grossman, G.M. & Helpman, E., 1989. "Quality Ladders And Product Cycles," Papers 152, Princeton, Woodrow Wilson School - Public and International Affairs.
- Grossman, G.M. & Helpman, E., 1989. "Quality Ladders And Product Cycles," Papers 39-89, Tel Aviv.
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Petsas, Iordanis, 2008. "Sustained Comparative Advantage in a Model of Schumpeterian Growth without Scale Effects," MPRA Paper 14300, University Library of Munich, Germany, revised 30 Sep 2008. [Downloadable!]

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