some thoughts on the growth theory

I have outlined some specific crtique of the growth theory in a previous blog. In this entry, I cannot give any thoughts on modeling, but merely talk about something that the new models should strive to explain, because it has been generally lacking in the literature.
First, I guess the most obvious absence concerns corporations. The models have not given a uitable role for corporations, given our obsession of national corporations. I think one core issue that needs to be addressed before a good model can be developed is that whether the nationality of the corporation has any influence over the decision of location, employment and managerial stuff. I think the answer is absolutely positive given the cost of information and existence of transaction, cost of monitoring, and other forms of friction imposed by language and culture. What is needed here is to quantify these effects, and I expect them to be heterogeneous among countries and regions. My hunch is that these friction cost will be smaller inamong European countries than among other regions. I feel teh absolute value of this friction will have some important implications for the growth model. This primitive model might explain the
Second, the distribution of wealth.
Third, the role of financial market and things like exchange rate regime