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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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Related research

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

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References

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Citations

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Cited by:
  1. CASTRO, Rui, 2005. "Economic Development under Alternative Trade Regimes," Cahiers de recherche 01-2005, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
  2. 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.
  3. Luca Fornaro, 2013. "International Debt Deleveraging," Working Papers 182, Oesterreichische Nationalbank (Austrian Central Bank).
  4. Yongsung Chang & Sun-Bin Kim & Jaewoo Lee, 2012. "Accounting for Global Dispersion of Current Accounts," Working papers 2012rwp-44, Yonsei University, Yonsei Economics Research Institute.
  5. Garett Jones, 2006. "IQ in the Ramsey Model: A Naive Calibration," DEGIT Conference Papers c011_063, DEGIT, Dynamics, Economic Growth, and International Trade.
  6. Mark Aguiar & Manuel Amador, 2011. "Growth in the Shadow of Expropriation," The Quarterly Journal of Economics, Oxford University Press, vol. 126(2), pages 651-697.
  7. CASTRO, Rui & KOUMTINGUÉ, Nelnan, 2011. "On the Individual Optimality of Economic Integration," Cahiers de recherche 2011-04, Universite de Montreal, Departement de sciences economiques.
  8. 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, vol. 12(1), pages 25-32.

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