In this paper we present and analyze a stylized model of endogenous growth
with international technology spillover effects from the North to the South. The
model allows for endogenous structural change and environmental degradation
that reduces world output. We find that within this framework the costless
technological spillovers foster structural change in both more and less advanced
economies. Moreover, we can show that under technological spillovers the degradation
of the environment is expected to be lower even without government interventions
and we highlight the role of endogenous structural change in generating
this outcome.