American Economic Review Vol. 80 No. 4 1990
Comparative Advantage and Long-Run Growth
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 (i.e., comparative advantage) bear importantly on the growth effects of economic structure and commercial policies.
- Volume
- 80
- Issue
- 4
- Pages
- 796-815
- Sources
- bibtex:phds-export.bib