Growth Cycles in a Two-country Model of Innovation

Kunihiko Konishi ()
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Kunihiko Konishi: Graduate School of Economics, Osaka University

No 15-07, Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics

Abstract: This study examines growth cycles in a simple discrete-time two-country model of in- novation. In this setting, we find that there are two key driving forces that give rise to cycles. They are perfect international capital mobility and perfect international knowledge spillovers. In addition, this study shows that the opening of trade can create cycles in both countries, whereas pretrade equilibrium in each country initially jumps to the steady state. That is, our results are characteristic of an open-economy framework.

Keywords: Two-country model; Cycles; Innovation (search for similar items in EconPapers)
JEL-codes: E32 F44 O41 (search for similar items in EconPapers)
Pages: 19 pages
Date: 2015-05
New Economics Papers: this item is included in nep-fdg, nep-gro, nep-ino and nep-mac
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Persistent link: https://EconPapers.repec.org/RePEc:osk:wpaper:1507

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