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Endogenous vs. Semi-endogenous Growth in a Two-R&D-Sector Model

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Li, Chol-Won

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Abstract

This paper contributes to the endogenous versus semi-endogenous growth debate by establishing that semi-endogenous growth is more general than endogenous growth in a two-R&D-sector growth model. It is demonstrated that endogenous growth requires two "knife-edge" conditions of parameters. This finding (i) is in sharp contrast to recent two-R&D-sector models that show that long-run growth is endogenous, and (ii) resurrects the policy conclusion of semi-endogenous growth that government policy is not effective in raising the underlying growth rate of an economy. The driving force of these results is knowledge spillovers between two R&D activities, which are largely neglected in existing studies.

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Article provided by Royal Economic Society in its journal The Economic Journal.

Volume (Year): 110 (2000)
Issue (Month): 462 (March)
Pages: C109-22
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Handle: RePEc:ecj:econjl:v:110:y:2000:i:462:p:c109-22

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  1. Paul Levine & Emanuela Lotti & Joseph Pearlman, 2003. "The Immigration Surplus Revisited in a General Equilibrium Model with Endogenous Growth," Department of Economics Discussion Papers 0203, Department of Economics, University of Surrey. [Downloadable!]
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  2. Creina Day, 2006. "Population and Endogenous Growth," ANUCBE School of Economics Working Papers 2006-475, Australian National University, College of Business and Economics, School of Economics. [Downloadable!]
  3. Christian Groth, 2004. "Innovation and growth: What have we learnt from the robustness debate?," Discussion Papers 04-29, University of Copenhagen. Department of Economics, revised Nov 2004. [Downloadable!]
  4. Charles I. Jones, . "Growth: With or Without Scale Effects?," Working Papers 99001, Stanford University, Department of Economics. [Downloadable!]
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  5. Charles I. Jones, 2004. "Growth and Ideas," NBER Working Papers 10767, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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    • Jones, Charles I., 2005. "Growth and Ideas," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 16, pages 1063-1111 Elsevier. [Downloadable!] (restricted)
  6. Funke, Michael & Ruhwedel, Ralf, 2003. "Export variety and economic growth in East European transition economies," BOFIT Discussion Papers 8/2003, Bank of Finland, Institute for Economies in Transition. [Downloadable!]
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