Trade and endogenous growth with Ricardo-Viner production technology

This paper derives three main results. First, learning by doing is sufficie nt to generate endogenous growth under Ricardo-Viner production technology. One implication of this result is that policy has a role when agents do no t internalize the dynamic gains from learning. Second trade is advantageous for a small country and in the case of domestic goods having low elasticit y of substitution in final consumption, high human capital content and/or a high learning rate, Third, border distortions in the form of import tariff s can affect pattern of specialization and long-run growth but only for lar ge economies and under very special circumstances.