International capital market integration: Implications for convergence, growth and welfare
AbstractThis paper studies the effects of international capital market integration on welfare and the speed of adjustment in a two-region endogenous growth model. Monopolistic firms undertake research and development (R&D) to improve their productivity level. National and international knowledge spillovers affect the returns to R&D. The two countries differ with respect to the initial productivity level and R&D capability (which is a proxy for human capital and structural policies). Long-run productivity gaps are determined by the difference in R&D capability. Over time, there is conditional convergence in productivity levels. The speed of convergence is larger with integrated international capital markets than without. Long-run gaps in consumption levels are larger in the former situation than in the latter. Capital market integration harms (benefits) the leading (lagging) region if domestic spillovers are more important than international spillovers and differences in R&D capabilities are small. Copyright Springer-Verlag Berlin Heidelberg 2004
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Tilburg University in its series Open Access publications from Tilburg University with number urn:nbn:nl:ui:12-143127.
Date of creation: 2004
Date of revision:
Publication status: Published in International Economics and Economic Policy (2004) v.1, p.173-194
Contact details of provider:
Web page: http://www.tilburguniversity.edu/
Other versions of this item:
- Sjak Smulders, 2004. "International capital market integration: Implications for convergence, growth, and welfare," International Economics and Economic Policy, Springer, vol. 1(2), pages 173-194, January.
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
- F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
- F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
- O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Hartmut Egger & Peter Egger & Josef Falkinger & Volker Grossmann, 2005.
"International Capital Market Integration, Educational Choice and Economic Growth,"
CESifo Working Paper Series
1630, CESifo Group Munich.
- Egger, Hartmut & Egger, Peter & Falkinger, Josef & Grossmann, Volker, 2005. "International Capital Market Integration, Educational Choice and Economic Growth," IZA Discussion Papers 1863, Institute for the Study of Labor (IZA).
- Simone Valente, 2009.
"International status seeking, trade, and growth leadership,"
Canadian Journal of Economics,
Canadian Economics Association, vol. 42(2), pages 554-589, May.
- Simone Valente, 2007. "International Status Seeking, Trade, and Growth Leadership," CER-ETH Economics working paper series 07/75, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
- Eleonora Cavallaro & Piero Esposito & Alessia Matano & Marcella Mulino, 2012.
"Technological catching up, quality of exports and competitiveness: a sectoral perspective,"
158, University of Rome La Sapienza, Department of Public Economics.
- Eleonora Cavallaro & Piero Esposito & Alessia Matano & Marcella Mulino, 2013. "Technological Catching Up, Quality of Exports, and Competitiveness: A Sectoral Perspective," Emerging Markets Finance and Trade, M.E. Sharpe, Inc., vol. 49(6), pages 4-21, November.
- Eleonora Cavallaro & Marcella Mulino, 2009.
"Technological Diffusion and Dynamic Gains from Trade,"
117, University of Rome La Sapienza, Department of Public Economics.
- Cavallaro, Eleonora & Mulino, Marcella, 2008. "Technological diffusion and dynamic gains from trade," MPRA Paper 13793, University Library of Munich, Germany.
- Valente, Simone, 2006.
"Trade, Envy and Growth: International Status Seeking in a Two-Country World,"
1095, University Library of Munich, Germany.
- Simone Valente, 2006. "Trade, Envy and Growth: International Status Seeking in a Two-Country World," CER-ETH Economics working paper series 06/53, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
- Eleonora Cavallaro & Marcella Mulino, 2008. "Vertical Innovation and Catching-Up: Implications of EU Integration for CEECs-5," International Advances in Economic Research, Springer, vol. 14(3), pages 265-279, August.
- Lutz Arnold, 2007. "A generalized multi-country endogenous growth model," International Economics and Economic Policy, Springer, vol. 4(1), pages 61-100, April.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Economists Online Support).
If references are entirely missing, you can add them using this form.