Cabo, F.; Martín-Herrán, G.; Martínez-García, M. - In: Decisions in Economics and Finance 37 (2014) 1, pp. 99-123
We analyze a dynamic two-country trade model between a technological leading country and a technological follower economy. The output production in the follower economy needs a renewable natural resource as an essential input. We first prove that the innovation developed in the leading country...