Product-Variety, Population, Competition, and Growth
AbstractThis paper analyzes how population and product market competition (PMC) interact with each other in affecting productivity growth. We find that only a fully endogenous growth model with purposeful investment in human capital, an input in the production of intermediate goods, can simultaneously predict (as suggested by the available theoretical/empirical literature) that the relationships between population and economic growth rates and between PMC and economic growth are non-monotonic. The trade-off between specialization-gains and complexity-costs arising from an expansion of product-variety is crucial in determining the sign of these correlations, and the possible complementarity between two key variables in economic growth.
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Bibliographic InfoPaper provided by DEGIT, Dynamics, Economic Growth, and International Trade in its series DEGIT Conference Papers with number c016_006.
Length: 36 pages
Date of creation: Sep 2011
Date of revision:
Endogenous and semi-endogenous growth; Population (size and growth); Human capital; Horizontal innovation; Scale effects; Monopolistic competition;
Find related papers by JEL classification:
- 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
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
- J10 - Labor and Demographic Economics - - Demographic Economics - - - General
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-05-15 (All new papers)
- NEP-COM-2012-05-15 (Industrial Competition)
- NEP-FDG-2012-05-15 (Financial Development & Growth)
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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