This paper explores the relationship between trade openness and economic growth through a change in institutions. To do so, the paper creates a theory of endogenous institutional change wherethere are three social groups, each one owns a speci…c production factor. An ellite (landowners)...

The aim of this paper is to understand whether international trade may enhance innovation and growth through an increase in competition.We develop a two-country endogenous growth model, both countries producing the same set of goods, with firm specific R&D and a continuum of oligopolistic...