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Comparative Advantage and Long-Run Growth

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  • Grossman, Gene M.
  • Helpman, Elhanan

Abstract

The authors construct a dynamic, two country model of trade and growth in which endogenous technological progress results from the profit-maximizing behavior of entrepreneurs. They study the role that the external trading environment and that trade and industrial policies play in the determination of long-run growth rates. Cross-country differences in efficiency at R&D versus manufacturing (i.e., comparative advantage) bear importantly on the growth effects of economic structure and commercial policies. Copyright 1990 by American Economic Association.
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Suggested Citation

  • Grossman, Gene M. & Helpman, Elhanan, 1988. "Comparative Advantage and Long-Run Growth," Foerder Institute for Economic Research Working Papers 275459, Tel-Aviv University > Foerder Institute for Economic Research.
  • Handle: RePEc:ags:isfiwp:275459
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    File URL: http://ageconsearch.umn.edu/record/275459/files/TEL-AVIV-FSWP-136.pdf
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    References listed on IDEAS

    as
    1. Zvi Griliches, 1998. "Issues in Assessing the Contribution of Research and Development to Productivity Growth," NBER Chapters,in: R&D and Productivity: The Econometric Evidence, pages 17-45 National Bureau of Economic Research, Inc.
    2. Grossman, Gene M & Helpman, Elhanan, 1989. "Product Development and International Trade," Journal of Political Economy, University of Chicago Press, vol. 97(6), pages 1261-1283, December.
    3. Ethier, Wilfred J, 1982. "National and International Returns to Scale in the Modern Theory of International Trade," American Economic Review, American Economic Association, vol. 72(3), pages 389-405, June.
    4. Judd, Kenneth L, 1985. "On the Performance of Patents," Econometrica, Econometric Society, vol. 53(3), pages 567-585, May.
    5. Krugman, Paul, 1987. "The narrow moving band, the Dutch disease, and the competitive consequences of Mrs. Thatcher : Notes on trade in the presence of dynamic scale economies," Journal of Development Economics, Elsevier, vol. 27(1-2), pages 41-55, October.
    6. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
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    Keywords

    Financial Economics;

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