Using a large sample of 50 oil exporting countries, we extend the prior literature by examining the role of quality of governance (QOG) on economic growth under the condition of heterogeneity and cross-sectional independence in errors. We document that QOG is by far the most consistent driver of...

After a long period of catch-up growth that began after the Second World War, France has now reached a technological frontier in many sectors of its economy. Why is it then that the French economy ranks so low in various rankings of the world's most innovative economies? Why is it so difficult...

We examine how inequality and openness interact in shaping the long-run growth prospects of developing countries. To this end, we develop a Schumpeterian growth model with heterogeneous households and non-homothetic preferences for quality. We show that inequality affects growth very differently...

Since the financial crisis in 2008, slow growth has riddled Europe and the Covid-19 pandemic is amplifying the challenge. Promoting economic growth and transforming to a more knowledge-based industrial structure will be high on the agenda for the coming decades. We study how more and better...

This paper considers how increasing longevity and declining birth rates affect market entry and endogenous productivity growth in a two-country model of trade. In each country, the demographic transition to an older population induces a contraction in the labor force through a decline in the...

This paper analyzes the role of complexity in production on the level of output and on its rate of growth. We develop an endogenous growth model with human capital accumulation, where increased complexity could exert either a positive or a negative effect on the level of output but always a...

This paper takes a modest step towards formalizing the theoretical interconnections among four post-Industrial-Revolution phenomena--the industrialization and growth take-off of rich "northern" nations, massive global income divergence, and rapid trade expansion. Specifically, we present a...

Because the returns to successful industrial research generally enjoy a larger scale economy than that to successful scientific research, this paper shows that while economic integration increases R&D employment, it may not raise the rate of long-run economic growth due to the shift of resources...

This paper investigates the link between overall specialization and growth, analyzing the shape of the relationship between the median of the sectoral distribution of the Balassa Index, our summary measure of overall specialization, and the level of per capita income. The median of the Balassa...