International trade in capital goods has quantitatively important effects on economic development through two channels: capital formation and aggregate TFP. We

The process of globalization is increasing the integration of all kinds of economic activity. Meanwhile, the international division of labor has reached levels

This paper presents an endogenous growth model of an open economy in which the growth rate of income is higher if foreign capital goods are used relatively more

Over the past three decades, the price of machinery and equipment fell dramatically relative to other prices in advanced and emerging market and developing econ