CEP Discussion Paper No 1288 August 2014 Dynamic Selection : An Idea Flows Theory of Entry , Trade and Growth

@inproceedings{Sampson2014CEPDP,
  title={CEP Discussion Paper No 1288 August 2014 Dynamic Selection : An Idea Flows Theory of Entry , Trade and Growth},
  author={Thomas Sampson},
  year={2014}
}
This paper develops an idea flows theory of trade and growth with heterogeneous firms. New firms learn from incumbent firms, but the diffusion technology ensures entrants learn not only from frontier technologies, but from the entire technology distribution. By shifting the productivity distribution upwards, selection on productivity causes technology diffusion and this complementarity generates endogenous growth without scale effects. On the balanced growth path, the productivity distribution… CONTINUE READING
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