THE EFFECTS OF THE TRANSPORTATION COSTS IN R&D TECHNOLOGY SECTOR ON THE ENDOGENOUS GRWOTH

The paper centers on investigating theoretically how the transportation costs of R&D technology, none of the transportation costs in final goods and intermediate inputs, affect the long-run endogenous economic growth. The basic ideas adopted in this paper are different from well-known models in the sense that the prices of R&D technology are influenced by the transportation cost in R&D technology sector and the accumulated profit of the intermediate inputs over time is equal to the price of R&D technology, and thus the transportation costs indirectly influence the endogenous growth. That is, the larger are only the transportation costs of R&D technology, the higher is the price of R&D technology and the slower is endogenous economic growth.