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has been cited by the following article:

• TITLE: The Effects of Opening Trade on Regional Inequality in a Model of Scale-Invariant Growth and Foot-Loose Capital

  AUTHORS: Katsufumi Fukuda

  KEYWORDS: Opening Trade; Foot-Loose Capital; R & D Growth; Scale Effects; Regional Inequality; Local and International Spillovers

  JOURNAL NAME: Theoretical Economics Letters, Vol.2 No.5, December 19, 2012

  ABSTRACT: We consider a semi endogenous R & D growth model with international trade, foot-loose capital, and local and international knowledge spillovers in a closed economy and also international knowledge spillovers in an open economy. We show that by opening trade two regions diverge (converge) with (not) sufficiently high intertemporal knowledge spillover in the R & D sector and elasticity of substitution between modern goods, and not sufficiently high (sufficiently high) richer country A’s share of firm owned.