Comparative Advantage and Long-Run Growth

Gene Grossman and Elhanan Helpman

No 2809, NBER Working Papers from National Bureau of Economic Research, Inc

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. We find that 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. Our analysis allows for both natural and acquired comparative advantage, and we discuss the primitive determinants of the latter.

Date: 1989-01
Note: ITI IFM
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Citations: View citations in EconPapers (27)

Published as The American Economic Review, Vol. 80, No. 4, pp. 796-815, (September 1990) .

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Related works:
Journal Article: Comparative Advantage and Long-run Growth (1990)
Working Paper: Comparative Advantage and Long-Run Growth (1988)
Working Paper: COMPARATIVE ADVANTAGE AND LONG-RUN GROWTH (1988)
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