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Oxford Economic Papers 2000; 52:637-650
Copyright © 2000 Oxford Universty Press

Article

Knowledge dissemination, capital accumulation, trade, and endogenous growth

D Ben-Davidz and MB Loewyy

z Tel-Aviv University, National Bureau of Economic Research, and Centre for Economic Policy Research
y Department of Economics, University of South Florida, BSN 3403, Tampa, FL 33620, USA
E-mail: mloewy@coba.usf.edu

Abstract

This paper preserves many of the primary features of the standard neoclassical framework while introducing some modifications that transform it into an open economy endogenous growth model with knowledge accumulation. The accumulation of knowledge is determined in part by the extent of knowledge spillovers from abroad, which in turn are affected by commercial policy that regulates the extent of trade between countries. The model predicts that trade liberalization (even if it is unilateral) will increase steady-state output growth in all countries while benefitting the liberalizing country the most in terms of relative income levels.


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This article has been cited by other articles:


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Localized sources of knowledge and the effect of knowledge spillovers: an empirical study of inventors in the telecommunications industry
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