Public Policies in Open Economies

Abstract

My thesis studies how the public policies would affect economies in term of growth and welfare in the open economy setting. Most of the studies on public policies are either on closed economy or on open economies with North-South setting where the North comes out with the new innovations from which variety of products come and the South learns to imitate the innovations from the North and produce the goods on their own. However, in reality we observe that the economies that compete can be of different degree of asymmetry. In my thesis, I would look at three different degrees. The first case is where both economies innovate, the second is where one innovate and the other takes over the innovation through standardization, and the third is where one innovate while the other borrow the first economy?s original innovation concepts to produce their own ?branch? innovations with the same concepts.