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...

We show that manufacturing firms locate only in northern regions when transportation costs are not high, and in both northern and southern regions when transportation costs are high; we do so through the use of a semi-endogenous research and development growth model with international trade,...

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...