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Capital Accumulation and Economic Growth in a Small Open Economy

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  • Turnovsky,Stephen J.

Abstract

Economic growth is an issue of primary concern to policy makers in both developed and developing economies. As a consequence, growth theory has long occupied a central role in economics. In this book, renowned growth theorist Stephen J. Turnovsky investigates the process of economic growth in a small open economy, showing that it is sensitive to the productive structure of the economy. The book comprises three parts, beginning with models where the only intertemporally viable equilibrium is one in which the economy is always on its balanced growth path. Empirical evidence suggests relatively slow speeds of convergence so the second part of the book looks at several alternative ways in which transitional dynamics may be introduced. In the third and final part, the author applies the growth model to the issue of foreign aid, focusing specifically on whether aid should be untied or tied to the accumulation of public capital.

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This book is provided by Cambridge University Press in its series Cambridge Books with number 9780521187527 and published in 2011.

Order: http://www.cambridge.org/uk/catalogue/catalogue.asp?isbn=9780521187527
Handle: RePEc:cup:cbooks:9780521187527

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Web page: http://www.cambridge.org

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Cited by:
  1. Michał Konopczyński, 2013. "Fiscal policy within a common currency area – growth implications in the light of neoclassical theory," Contemporary Economics, University of Finance and Management in Warsaw, vol. 7(3), October.
  2. Yunfang Hu & Kazuo Mino, 2011. "Globalization and Volatility under Alternative Trade Structures," KIER Working Papers 791, Kyoto University, Institute of Economic Research.
  3. Rick van der Ploeg & Anthony J Venables, 2010. "Absorbing A Windfall Of Foreign Exchange: Dutch disease dynamics," OxCarre Working Papers 052, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.
  4. Rattsø, Jørn & Stokke, Hildegunn E., 2012. "Trade policy in a growth model with technology gap dynamics and simulations for South Africa," Journal of Economic Dynamics and Control, Elsevier, vol. 36(7), pages 1042-1056.
  5. Hu, Yunfang & Mino, Kazuo, 2013. "Trade structure and belief-driven fluctuations in a global economy," Journal of International Economics, Elsevier, vol. 90(2), pages 414-424.

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