Comin, Diego; Loayza, Norman V.; Servén, Luis; Pasha, … - National Bureau of Economic Research (NBER) - 2009
We build a two country asymmetric DSGE model with two features: (i) endogenous and slow diffusion of technologies from the developed to the developing country, and (ii) adjustment costs to investment flows. We calibrate the model to match the Mexico-U.S. trade and FDI flows. The model is able to...