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α: calibrated so average coauthorship-adjusted count equals average raw count
This paper examines the dynamic implications of international trade in a two‐sector overlapping‐generations economy with endogenous growth. It analyses the global dynamics of this model for both a closed economy and a two‐country world economy. It shows how international trade can cause the world economy to sort itself out into groups of fast and slow‐growing economies and can also cause one country to catch up and overtake another’s growth rate. It thus provides theoretical support for empirical papers which find that the world distribution of income is diverging.