Financial repression and external openness in an endogenous growth model
AbstractAn endogenous growth model has been developed that extends Sidrauski (1967), Roubini and Sala-i-Martin (1992,1995) and Lucas (1988) by combining financial development, human capital investment, and external openness. Financial development and trade liberalization are shown to increase the economic growth rate by increasing the marginal benefits of human capital investment. Expansionary governments are, however, provided with an incentive to increase the money supply growth rate, to repress the financial sector, to close its economy, and to impose a high proportional income tax rate.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal The Journal of International Trade & Economic Development.
Volume (Year): 9 (2001)
Issue (Month): 4 ()
Contact details of provider:
Web page: http://www.tandfonline.com/RJTE20
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Jordan Shan & Jianhong Qi, 2006. "Does Financial Development 'Lead' Economic Growth? The Case of China," Annals of Economics and Finance, Society for AEF, vol. 7(1), pages 197-216, May.
- Rangan Gupta, 2007.
"Financial Liberalization and Inflationary Dynamics: An Open Economy Analysis,"
International Economic Journal,
Taylor & Francis Journals, vol. 21(3), pages 335-360.
- Rangan Gupta, 2005. "Financial Liberalization and Inflationary Dynamics: An Open Economy Analysis," Working papers 2005-32, University of Connecticut, Department of Economics.
- Sung Jin Kang, 2000. "Relative Backwardness and Technological Catching Up with Scale Effects," Econometric Society World Congress 2000 Contributed Papers 0407, Econometric Society.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.