The paper demonstrates how trade between developing countries can cause the divergence of long-run growth among these countries. The model describes two symmetric countries trading with each other and the industrial rest of the world. Bilateral trade occurs at any moment if the countries have...

The purpose of this papers is confined to illuminating the aspect: Has Sewedish economic growth been slow relative to other industrialised countries in recent decades, i.e. is Sweden lagging behind

The purpose of this papers is confined to illuminating the aspect: Has Sewedish economic growth been slow relative to other industrialised countries in recent decades, i.e. is Sweden lagging behind

can income equality be combined with high economic efficiency and rapid economic growth? Fortunately, we need not to answer such a general question. Indeed, the question is poorly phrased. The relationship between income and wealth distribution, on one hand, and efficiency/growth, on the other,...

FDI has received surprisingly little attention in theoretical and empirical work on openness and growth. This paper presents a theoretical growth model where MNCs directly affect the endogenous growth rate via technological spillovers. This is novel since other endogenous growth models with...

This paper presents a model of R&D-driven growth without scale effects where firms can engage in both horizontal and vertical R&D activities.

This paper presents a model to explain why both industry leaders and follower firms often invest in R&D and explores the welfare implications of these R&D investment choices. Regardless of initial conditions, the equilibrium path in this model involves gradually convergence to a balanced growth...