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North-South Models of Growth and Trade

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  • Chui, Michael, et al

Abstract

The paper surveys the literature that combines growth and trade into models of North-South interaction. We distinguish two strands of growth theory: old (exogenous) and new (endogenous) growth. We also distinguish old trade theory which assumes constant returns to scale and perfect competition, and new trade theory which relaxes both of these assumptions. This gives us four possible combinations of growth and trade theories which provide the basis of the taxonomy employed in our survey. We address the following long-standing issues raised in the literature: first, given that one of the North-South asymmetries is that the North leads in technical progress, how does the South adjust to such changes? Second, can the models explain patterns of trade and income differentials between the regions? Third, do asymmetries mean that standard prescriptions on the mutual benefits of free trade and free movements of capital need to be modified? Finally, can our models explain why the South continues to favour protection of its manufacturing sectors at the same time that barriers within the North are being dismantled? Copyright 2002 by Blackwell Publishers Ltd

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Journal of Economic Surveys.

Volume (Year): 16 (2002)
Issue (Month): 2 (April)
Pages: 123-65

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Handle: RePEc:bla:jecsur:v:16:y:2002:i:2:p:123-65

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Cited by:
  1. Montobbio Fabio & Rampa Francesco, 2002. "The impact of technology and structural change on export performance on nine developing coutries," Economics and Quantitative Methods, Department of Economics, University of Insubria qf0219, Department of Economics, University of Insubria.
  2. Miller, Andrew D. & Langley, Suchada V. & Chambers, William, 2003. "Current Issues Affecting Trade And Trade Policy: An Annotated Literature Review," Working Papers, International Agricultural Trade Research Consortium 14606, International Agricultural Trade Research Consortium.
  3. Ugo Fratesi, 2003. "Innovation Diffusion and the Evolution of Regional Disparities," ERSA conference papers ersa03p327, European Regional Science Association.
  4. Petsas, Iordanis, 2009. "Sustained Comparative Advantage and Semi-Endogenous Growth," MPRA Paper 14297, University Library of Munich, Germany.
  5. André Varella Mollick & Jo�o Ricardo Faria & Pedro H. Albuquerque & Miguel A. León-Ledesma, 2008. "Can globalisation stop the decline in commodities' terms of trade?," Cambridge Journal of Economics, Oxford University Press, Oxford University Press, vol. 32(5), pages 683-701, September.
  6. Castellacci, Fulvio, 2007. "Technological regimes and sectoral differences in productivity growth," MPRA Paper 27598, University Library of Munich, Germany.
  7. Ugo Fratesi, 2004. "Regional policy from a supra-regional perspective," ERSA conference papers ersa04p509, European Regional Science Association.
  8. Castellacci, Fulvio, 2006. "Evolutionary and new growth theories: are they converging?," MPRA Paper 27602, University Library of Munich, Germany.
  9. Fulvio Castellacci, 2007. "Technological regimes and sectoral differences in productivity growth ," Industrial and Corporate Change, Oxford University Press, vol. 16(6), pages 1105-1145, December.
  10. Fratesi, Ugo, 2007. "The Spatial Diffusion of Innovations and the Evolution of Regional Disparities," Investigaciones Regionales, Asociación Española de Ciencia Regional, Asociación Española de Ciencia Regional, issue 11, pages 131-160.
  11. Paul Levine & Emanuela Lotti & Joseph Pearlman & Richard Pierse, 2010. "Growth And Welfare Effects Of World Migration," Scottish Journal of Political Economy, Scottish Economic Society, vol. 57(5), pages 615-643, November.
  12. Andre Varella Mollick & Joao Ricardo Faria & Pedro H. Albuquerque & Miguel A. Leon-Ledesma, 2005. "Can Globalisation Stop the Decline in Commodities' Terms of Trade? The Prebisch-Singer Hypothesis Revisited"," Studies in Economics, Department of Economics, University of Kent 0510, Department of Economics, University of Kent.
  13. Hiroaki Sasaki, 2010. "Trade, Non-Scale Growth, and Uneven Development," Discussion papers e-10-002, Graduate School of Economics Project Center, Kyoto University.
  14. Sylvanus Kwaku Afesorgbor & Peter A.G. van Bergeijk, 2014. "Measuring multi-membership in economic integration and its trade-impact. A comparative study of ECOWAS and SADC," Economics Working Papers, School of Economics and Management, University of Aarhus 2014-06, School of Economics and Management, University of Aarhus.
  15. Ginchev Ivan & Guerraggio Angelo & Rocca Matteo, 2002. "On second-order conditions in vector optimization," Economics and Quantitative Methods, Department of Economics, University of Insubria qf0218, Department of Economics, University of Insubria.
  16. Qun Bao & Puyang Sun & Jiayu Yang & Li Su, . "Does High-tech Export Cause More Technology Spillover? Evidence from Contemporary China," Discussion Papers 10/06, University of Nottingham, GEP.
  17. Castellacci, Fulvio, 2008. "Innovation and the competitiveness of industries: comparing the mainstream and the evolutionary approaches," MPRA Paper 27523, University Library of Munich, Germany.
  18. Dinopoulos, Elias & Segerstrom, Paul, 2006. "North-South Trade and Economic Growth," CEPR Discussion Papers, C.E.P.R. Discussion Papers 5887, C.E.P.R. Discussion Papers.

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