Competiton And Growth In An Endogenous Growth Model With Expanding Product Variety Without Scale Effects Revisited
AbstractThis paper shows that the results of Bianco (2006) depend critically on the assumption that there are no difference between the intermediate goods share in final output, the returns of specialization and the degree of market power of monopolistic competitors. In this paper, we disentangle the market power parameter from the intermediate goods share in final output and the returns to specialization. The main result of this paper is the death of the inverted-U shape relationship between competition and growth. Indeed, we find a decreasing relationship between competition and growth which is due to the composition of two negative effects on growth : resource allocation and Schumpeterian effects.
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Bibliographic InfoArticle provided by Spiru Haret University, Faculty of Financial Management and Accounting Craiova in its journal Journal of Applied Economic Sciences.
Volume (Year): 4 (2009)
Issue (Month): 4(10)_Winter2009 ()
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Web page: http://www2.spiruharet.ro/facultati/facultate.php?id=14
More information through EDIRC
endogenous growth; horizontal differentiation; technological change; imperfect competition.;
Other versions of this item:
- Bianco, Dominique, 2009. "Competition and Growth in an Endogenous Growth Model with Expanding product Variety without Scale Effects Revisited," MPRA Paper 16670, University Library of Munich, Germany.
- O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Dominique Bianco, 2007.
"An Inverted U-Relationship between Product Market Competition and Growth in an Extended Romerian Model: A Comment,"
Rivista di Politica Economica,
SIPI Spa, vol. 97(5), pages 245-258, September.
- Bianco, Dominique, 2007. "An inverted-U relationship between product market competition and Growth in an extended romerian model : A comment," MPRA Paper 4492, University Library of Munich, Germany.
- Gino Gancia & Fabrizio Zilibotti, 2005.
"Horizontal Innovation in the Theory of Growth and Development,"
200, Barcelona Graduate School of Economics.
- Gancia, Gino & Zilibotti, Fabrizio, 2005. "Horizontal Innovation in the Theory of Growth and Development," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 3, pages 111-170 Elsevier.
- Gino Gancia & Fabrizio Zilibotti, 2005. "Horizontal innovation in the theory of growth and development," Economics Working Papers 831, Department of Economics and Business, Universitat Pompeu Fabra.
- Bianco, Dominique, 2007. "Competition and Growth in an Endogenous Growth Model with Expanding Product Variety without Scale Effects," MPRA Paper 6179, University Library of Munich, Germany, revised 08 Dec 2007.
- Dominique Bianco, 2006. "Competition and growth in endogenous growth model with expanding product variety without scale effects," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 49(3), pages 191-202.
- Elias Dinopoulos & Peter Thompson, 1999. "Scale effects in Schumpeterian models of economic growth," Journal of Evolutionary Economics, Springer, vol. 9(2), pages 157-185.
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