Abstract
We construct a dynamic, two-country model of trade and growth in which endogenous technological progress results from the profit-maximizing behavior of entrepreneurs. We 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 (ie comparative advantage) bear importantly on the growth effects of economic structure and commercial policies. -Authors
| Original language | English (US) |
|---|---|
| Pages (from-to) | 796-815 |
| Number of pages | 20 |
| Journal | American Economic Review |
| Volume | 80 |
| Issue number | 4 |
| State | Published - 1990 |
| Externally published | Yes |
All Science Journal Classification (ASJC) codes
- Economics and Econometrics