The paper provides an explanation of the mechanisms underlying trade roots of the contagion effects emanating from the recent turmoils. It is argued that under demand uncertainty risk averse behavior of firms provides a basis for international trade. The paper shows by means of a simple...

This paper presents a theoretical growth model that accounts for technological interdependence among regions in a Mankiw-Romer-Weil world. The reasoning behind the theoretical work is that technological ideas cannot be fully appropriated by investors and these ideas may diffuse and increase the...

This paper uses a global vector autoregressive (GVAR) model to analyze the relationship between FDI inflows and output dynamics in a multi-country context. The GVAR model enables us to make two important contributions: First, to model international linkages among a large number of countries,...

The contributions in this volume explore the relationship between processes of technological innovation, their network characteristics and their local and regional development impacts. Case studies, empirical evidence and conceptual perspectives provide insights on the local effects of...

What are the most favourable conditions for the generation of innovative ideas and forms of enterprise? Can they be stimulated by intervention policies? To what extent does the injection of new technology stimulate local economic development? Do Science Parks really work? It is increasingly...