Licandro, Omar (contributor); … - 2007
exchange of
knowledge leading to growth, the so-called knowledge spillovers (Rivera-Batiz and
Romer, 1991, and Devereux and …)
where zit is the stock of knowledge, which is assumed to be �rm-speci�c. Firms in
X can also invest in R&D activities … initial stock of knowledge is equal for all �rms in all sectors, i.e. zi0 = z0;8 i.
As it can be seen in the last term of …