We construct a semi endogenous growth model with firm heterogeneity, endogenous international spillover, and international trade and investigate the effects of further exposure to trade on R&D difficulty and welfare. Further exposure has ambiguous effects on R&D difficulty, increases when the...

This paper shows that globalization increases (decreases) the growth rate if and only if the beachhead cost for the domestic market is strictly higher (lower) than that for the foreign market in a endogenous growth model with firm heterogeneity, international trade, and endogenous international...

We present a simple two(-country) by two(-good) differental game model of international trade in which the governments of the two countries play a tariff-setting game. We explicitly derive a unilateral optimum tarifff rate and then a Markov-perfect equilibrium pair of tariff strategies...