Knowledge dissemination, capital accumulation, trade, and endogenous growth

This paper preserves many of the primary features of the standard neoclassi cal framework while introducing some modifications that transform it into a n open economy endogenous growth model with knowledge accumulation. The acc umulation of knowledge is determined in part by the extent of knowledge spi llovers from abroad, which in turn are affected by commercial policy that r egulates the extent of trade between countries. The model predicts that tra de liberalization (even if it is unilateral) will increase steady-state out put growth in all countries while benefitting the liberalizing country the most in terms of relative income levels.