Empirical research on the linkage between trade openness and productivity growth takes center stage in most studies in search for the effects of trade liberalization on economic progress. This is true for both the firm level and for aggregate analyses. There exist various channels through which...

The paper develops a two-country dynamic general-equilibrium model of growth without scale effects to explore the effects of globalization on long-run growth and wages. Higher quality products are endogenously discovered through stochastic and sequential global innovation contests in which...