Aghion, Philippe; Howitt, Peter; Mayer-Foulkes, David - In: The Quarterly Journal of Economics 120 (2005) 1, pp. 173-222
We introduce imperfect creditor protection in a multicountry Schumpeterian growth model. The theory predicts that any country with more than some critical level of financial development will converge to the growth rate of the world technology frontier, and that all other countries will have a...