Endogenous Growth and South-North Trade
AbstractIn this article, we develop an endogenous growth model to analyze the impact of knowledge spillovers, the disparity in initial endowments and production technologies on economic growth of two trading regions. We found that the growth rates of technology development of the two regions become uneven unless they have an identical initial steady-state labor allocation between technology development and intermediate inputs. Trade in intermediate goods and knowledge spillovers improve welfare in both regions.
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Bibliographic InfoArticle provided by Center for Economic Integration, Sejong University in its journal Journal of Economic Integration.
Volume (Year): 17 (2002)
Issue (Month): ()
Endogenous Growth; Monopolistic Differentiated Product Market; Even (Equal) and Uneven (Unequal) Growth; Knowledge Spillover;
Find related papers by JEL classification:
- D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
- O30 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - General
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