Petsas, Iordanis (2009): Sustained Comparative Advantage and Semi-Endogenous Growth. Unpublished.
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This paper constructs a two-country (Home and Foreign) general equilibrium model of Schumpeterian growth without scale effects. The scale effects property is removed by introducing a distinct specification in the knowledge production function which generates semi-endogenous growth. In this model of semi-endogenous growth, an increase in the rate of population growth rate raises Home’s relative wage and lowers its range of goods exported to Foreign. An increase in the size of innovations increases Home’s relative wage but with an ambiguous effect on its comparative advantage. The model generates a unique steady-state equilibrium in which there is complete specialization in both goods and R&D production within each country.
| Item Type: | MPRA Paper |
|---|---|
| Language: | English |
| Keywords: | Comparative advantage, Trade, Schumpeterian growth, Scale effects, R&D races |
| Subjects: | F - International Economics > F0 - General O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O30 - General O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O10 - General O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O40 - General |
| ID Code: | 14297 |
| Deposited By: | Iordanis Petsas |
| Deposited On: | 30. Mar 2009 17:08 |
| Last Modified: | 03. Aug 2011 14:34 |
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