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Economic Development and Growth in the World Economy

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  • Rui Castro

    (Universite de Montreal)

Abstract

This paper investigates whether technological shocks, constructed to be consistent with the observed cross-country income dispersion, are also capable of accounting for development regularities related to capital accumulation. This question is approached via a quantitative theoretical analysis of an integrated world economy model. An open economy framework constrains country heterogeneity to be consistent with international capital flows. Moreover, it enables the study of distinctively open economy development facts. The model produces time-invariant cross-sectional distributions for development variables, whose properties are quantitatively compared with the Penn World Table data set. The model generates too little dispersion in capital-output ratios and investment rates. However, it is consistent with the relative importance of investment, saving, and international capital flows for economic development. (Copyright: Elsevier)

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File URL: http://dx.doi.org/10.1016/j.red.2004.10.006
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Bibliographic Info

Article provided by Elsevier for the Society for Economic Dynamics in its journal Review of Economic Dynamics.

Volume (Year): 8 (2005)
Issue (Month): 1 (January)
Pages: 195-230

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Handle: RePEc:red:issued:v:8:y:2005:i:1:p:195-230

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Keywords: Economic development; economic growth; open economy macroeconomics; quantitative dynamic general equilibrium analysis; incomplete markets;

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Citations

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Cited by:
  1. Luca Fornaro, 2013. "International Debt Deleveraging," Working Papers, Oesterreichische Nationalbank (Austrian Central Bank) 182, Oesterreichische Nationalbank (Austrian Central Bank).
  2. Garett Jones, 2006. "IQ in the Ramsey Model: A Naive Calibration," DEGIT Conference Papers, DEGIT, Dynamics, Economic Growth, and International Trade c011_063, DEGIT, Dynamics, Economic Growth, and International Trade.
  3. Mark Aguiar & Manuel Amador, 2010. "Growth in the Shadow of Expropriation," 2010 Meeting Papers, Society for Economic Dynamics 1194, Society for Economic Dynamics.
  4. Yongsung Chang & Sun-Bin Kim & Jaewoo Lee, 2013. "Accounting for Global Dispersion of Current Accounts," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 16(3), pages 477-496, July.
  5. Rui Castro, 2006. "Economic Development Under Alternative Trade Regimes," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 47(2), pages 611-649, 05.
  6. Felix-Constantin Burcea & Emilia Ungureanu & Cristina Florentina Bâldan, 2012. "Energy Intensity - A Key Indicator for the Economic Development," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, University of Petrosani, Romania, vol. 12(1), pages 25-32.
  7. Fuentes, Raúl, 2005. "Aid, Policies and Growth: A Non-Canonical Alternative for solving This Puzzle," Proceedings of the German Development Economics Conference, Kiel 2005 14, Verein für Socialpolitik, Research Committee Development Economics.
  8. Rui CASTRO & Nelnan KOUMTINGUÉ, 2014. "On the Individual Optimality of Economic Integration," Cahiers de recherche, Centre interuniversitaire de recherche en économie quantitative, CIREQ 05r-2011, Centre interuniversitaire de recherche en économie quantitative, CIREQ.

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