Endogenous Growth and R&D Models. A Critical Appraisal of Recent Developments / Endogenes Wachstum und R&D Modelle. Eine kritische Darstellung neuerer Entwicklungen

Abstract

Summary This paper discusses recent contributions to the so-called new growth theory which attempt to provide an explanation for endogenous growth processes. Special attention is paid to the specification of technology in the R&D sector as well as the incorporation of new technological knowledge in an aggregated production function. The paper also presents two models that examine the effects pf international trade on national growth rates. The main line of argumentation focuses on the economic rationale behind the results of the model which are shown to be sensitive to specific assumptions of the production factor of technological know-how.