Agglomeration and Growth Effects of Trade Liberalization
AbstractThis paper develops a growth model with two countries, where researchers use formerly developed intermediate goods as inputs. It is found that trade liberalization in these goods speeds up the growth rate if trade costs initially are small and we allow internatinal wages to differ. On the other hand, there is possibly no relationhip between growth and trade liberalization for higher levels of trade costs. The reason is that agglomeration forces then may have led the entire reserach sector to concentrate into one country.
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Bibliographic InfoPaper provided by Norwegian School of Economics and Business Administration- in its series Papers with number 30/98.
Length: 23 pages
Date of creation: 1998
Date of revision:
Contact details of provider:
Postal: NORWEGIAN SCHOOL OF ECONOMICS AND BUSINESS ADMINISTRATION, HELLEVEIEN 30, 5035 BERGEN SANDVIKEN NORWAY.
Phone: 5595 9000
Fax: 5595 9100
Web page: http://www.nhh.no/
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GROWTH MODELS ; ECONOMIC DEVELOPMENT ; TRADE LIBERALIZATION;
Find related papers by JEL classification:
- F10 - International Economics - - Trade - - - General
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
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