Does international trade produce convergence?

In spite of increasing globalization around the world, the effects of international trade on economic growth are not very clear. I consider an endogenous economic growth model in an open economy with the Home Market Effect (HME) and non-homothetic preferences in order to identify some determinants of the different results in this relationship. The model shows how trade between similar countries leads to convergence in economic growth when knowledge spillovers are present, while trade between very asymmetric countries produces divergence and may become trade in a poverty or growth trap. The results for welfare move in the same direction as economic growth since convergence implies increases in welfare for both countries, while divergence leads to increases in welfare for the largest country and the opposite for its commercial partner in the absence of knowledge spillovers. International trade does not implicate greater welfare as is usual in a static context under CES preferences.

Labor's shares - aggregate and industry: accounting for both in a model of unbalanced growth with induced innovation

The relative stability of aggregate labor's share constitutes one of the great macroeconomic ratios. However, relative stability at the aggregate level masks the unbalanced nature of industry labor's shares – the Kuznets stylized facts underlie those of Kaldor. We present a two-sector – one labor-only and the other using both capital and labor – model of unbalanced economic development with induced innovation that can rationalize these phenomena as well as several other empirical regularities of actual economies. Specifically, the model features (i) one sector ("goods" production) becoming increasingly capital-intensive over time; (ii) an increasing relative price and share in total output of the labor-only sector ("services"); and (iii) diverging sectoral labor's shares despite (iii) an aggregate labor's share that converges from above to a value between 0 and unity. Furthermore, the model (iv) supports either a neoclassical steadystate or long-run endogenous growth, giving it the potential to account for a wide range of real world development experiences.

Transport impact of in urban planning: the case of Transmilenio in Bogota

The growth and expansion of cities during the last century can’t be seen without taking into account the important role they have assumed in the transport infrastructure. In Bogota have passed trough streetcar, buses and automóviles was deciding for the city, because all this periods marked a drastic change in growth morphology. This article studies the planning of Mass Transit System –MTS– Transmilenio and its interaction with the urban structure, in light of the current city planning framework. It also specifies the behavior of land use in the construction of the system first phase. One of the most important findings of this study is that there is no articulation between land and transport use system, despite the decisions taken in the ordering model. Similarly, local and intermediate planning exhibits Peak articulation.The existing infrastructure of the MTS reiterates the tendency to concentrate the accessibility in one place: the center has the largest accessibility whereas periphery fails to overcome its limitations of accessibility. While the city continued with this trend the existence of a coordinated planning system for Bogota and the ability to meet expectations of planning model is questionable, however it is something that depends not only on MTS.