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Government Size, Trade and Growth

Author

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  • Gieyoung Lim

    (Hankuk University of Foreign Studies)

Abstract

We examine the effect of public sector size in an overlapping generations model in which human capital formation is endogeneous and economic growth depends crucially on the stock of human capital in the economy. First, we investigate how factor composition and growth rate are affected b y the different levels of fiscal policy in autarky. Second, we show that the tradce pattern and growth rate can be determined by the extent of fiscal policy in an open economy.

Suggested Citation

  • Gieyoung Lim, 2003. "Government Size, Trade and Growth," Korean Economic Review, Korean Economic Association, vol. 19, pages 53-79.
    • Handle: RePEc:kea:keappr:ker-200306-19-1-03
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    More about this item

    Keywords

    Government size; human capital; trade; growth;
    All these keywords.

    JEL classification:

    • F1 - International Economics - - Trade
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents

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