Open Economy Schumpeterian Growth
AbstractThis paper examines the Aghion and Howitt  Â“creative destructionÂ” endogenous growth model in an open economy setting. We consider four alternative trade regimes. The first two regimes allow the monopoly producer of the intermediate good to attain worldwide monopoly rents. In the first of the two, the countries engage in trade of only the imperfectly produced intermediate good. In the second, the two countries trade in both the intermediate good as well as in ideas. The last two regimes consider two countries which are identical before and after trade opens such that pro-competitive gains from trade are achieved. We again consider when only intermediaries may be traded and thereafter when both intermediaries and ideas may be traded. We find that the effects of trade on growth and welfare depend critically on the assumptions one imposes.
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Bibliographic InfoPaper provided by University of Adelaide, Centre for International Economic Studies in its series Centre for International Economic Studies Working Papers with number 2003-17.
Length: 50 pages
Date of creation: May 2003
Date of revision:
Creative Destruction; Obsolescence; Endogenous Growth; International Trade; Imperfect Competition; Schumpeterian Growth;
Other versions of this item:
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
- F15 - International Economics - - Trade - - - Economic Integration
- F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
- O30 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - General
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.:
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"A Model Of Growth Through Creative Destruction,"
UWO Department of Economics Working Papers
8904, University of Western Ontario, Department of Economics.
- Aghion, P. & Howitt, P., 1990. "A Model Of Growth Through Creative Destruction," DELTA Working Papers 90-12, DELTA (Ecole normale supérieure).
- Philippe Aghion & Peter Howitt, 1990. "A Model of Growth Through Creative Destruction," NBER Working Papers 3223, National Bureau of Economic Research, Inc.
- Aghion, P. & Howitt, P., 1989. "A Model Of Growth Through Creative Destruction," Working papers 527, Massachusetts Institute of Technology (MIT), Department of Economics.
- Rivera-Batiz, Luis A & Romer, Paul M, 1991.
"Economic Integration and Endogenous Growth,"
The Quarterly Journal of Economics,
MIT Press, vol. 106(2), pages 531-55, May.
- Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
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