In this paper I consider the 1991 Grossman-Helpman model which analyses the role of innovation on growth. The model assumes constant returns to scale. I intend to show what happen in this model if I assume strong increasing returns. In particular, under the assumption of increasing returns of...

With the progress of globalization, the openness-output nexus has drawn more attention than ever before. Results in this aspect, however, are inconclusive. Based on the average growth rate for the last two decades, we select 12 top performed Asian countries: Bangladesh, China, India, Indonesia,...

This paper re-examines the pollution-income relationship using a random coefficients model to allow for greater cross-country heterogeneity. The existence of a common pollution-income relationship across countries is rejected and hence little support for the environmental Kuznets curve is found.

We develop an endogenous growth model with overlapping generations taking into account important characteristics of the developing countries: high public external debt and large informal sector. We show that an increasing of the public external debt has two opposite effects. On the one hand, it...

This paper re-examines the pollution-income relationship using a random coefficients model to allow for greater cross-country heterogeneity. The existence of a common pollution-income relationship across countries is rejected and hence little support for the environmental Kuznets curve is found.