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Knowledge Dissemination, Capital Accumulation, Trade and Endogenous Growth

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  • Ben-David, Dan
  • Loewy, Michael B

Abstract

The theoretical framework presented here preserves many of the primary features of the standard neo-classical model, while introducing some modifications that transform it into an open economy endogenous growth model with knowledge accumulation. Knowledge accumulation is determined in part by the extent of knowledge spillovers from abroad and the extent to which each country is exposed to the knowledge stocks of other countries. The degree of this exposure is assumed to be directly related to the level of external trade - which implies that commercial policy can affect economic growth. In particular, unilateral trade liberalization may increase steady-state income growth in all countries.

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  • Ben-David, Dan & Loewy, Michael B, 1996. "Knowledge Dissemination, Capital Accumulation, Trade and Endogenous Growth," CEPR Discussion Papers 1335, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:1335
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    References listed on IDEAS

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    More about this item

    Keywords

    Growth; Knowledge Diffusion; Trade;
    All these keywords.

    JEL classification:

    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • F1 - International Economics - - Trade
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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