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Learning-By-Doing, Government Spending And Economic Growth: A Model A La Matsu Yama-Barro

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  • CARLOS HUMBERTO ORTIZ QUEVEDO

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    Abstract

    Learning-by-doing and external productive effects of government spending are well-known engines of long-run economic growth. To the best of our knowledge, the interaction of these growth engines has not been analysed. This paper aims at filling this vacuum by combining the approaches of Matsuyama (1992) and Barro (1990). In the ensuing model, industrialization and growth are directly related. Governments may play a role in industrialization by adopting an optimal fiscal policy, and through improving efficiency. There is also room for industrial policies that lead to an optimal allocation of resources. The latter possibility is in contradiction to an open commercial regime that leads to deindustrialization. The model is used to think about some development experiences, specially about the slowdown of the Colombian economy since the 1980s.

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    Bibliographic Info

    Paper provided by UNIVERSIDAD DEL VALLE - CIDSE in its series DOCUMENTOS DE TRABAJO-CIDSE with number 003136.

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    Length: 29
    Date of creation: 20 Jun 2003
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    Handle: RePEc:col:000149:003136

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    1. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    2. Jeffrey D. Sachs & Andrew M. Warner, 1995. "Natural Resource Abundance and Economic Growth," NBER Working Papers 5398, National Bureau of Economic Research, Inc.
    3. Kiminori Matsuyama, 1990. "Agricultural Productivity, Comparative Advantage, and Economic Growth," Discussion Papers 934, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    4. Ben-David, Dan, 1993. "Equalizing Exchange: Trade Liberalization and Income Convergence," The Quarterly Journal of Economics, MIT Press, vol. 108(3), pages 653-79, August.
    5. Barro, Robert J., 1990. "Government Spending in a Simple Model of Endogeneous Growth," Scholarly Articles 3451296, Harvard University Department of Economics.
    6. Mauricio Cárdenas, 2007. "Economic Growth In Colombia:A Reversal Of ‘Fortune’?," ENSAYOS SOBRE POLÍTICA ECONÓMICA, BANCO DE LA REPÚBLICA - ESPE.
    7. repec:fth:stanho:e-92-3 is not listed on IDEAS
    8. Krugman, Paul, 1987. "The narrow moving band, the Dutch disease, and the competitive consequences of Mrs. Thatcher : Notes on trade in the presence of dynamic scale economies," Journal of Development Economics, Elsevier, vol. 27(1-2), pages 41-55, October.
    9. Edwards, Sebastian, 1993. "Openness, Trade Liberalization, and Growth in Developing Countries," Journal of Economic Literature, American Economic Association, vol. 31(3), pages 1358-93, September.
    10. Jong-Wha Lee, 1993. "International Trade, Distortions, and Long-Run Economic Growth," IMF Staff Papers, Palgrave Macmillan, vol. 40(2), pages 299-328, June.
    11. Francisco Rodriguez & Dani Rodrik, 1999. "Trade Policy and Economic Growth: A Skeptic's Guide to Cross-National Evidence," NBER Working Papers 7081, National Bureau of Economic Research, Inc.
    12. Young, Alwyn, 1991. "Learning by Doing and the Dynamic Effects of International Trade," The Quarterly Journal of Economics, MIT Press, vol. 106(2), pages 369-405, May.
    13. Alwyn Young, 1991. "Learning by Doing and the Dynamic Effects of International Trade," NBER Working Papers 3577, National Bureau of Economic Research, Inc.
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