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R&D, Imperfect Competition and Growth with Human Capital Accumulation

  • Alberto Bucci

This paper studies the long-run consequences of imperfect competition on growth and the sectoral distribution of skills within an R&D-based growth model with human capital accumulation. We find that steady-state growth is driven only by incentives to accumulate skills. In the model imperfect competition has a positive growth effect, while influencing the allocation of human capital to the different economic activities employing this factor input. Contrary to general wisdom, the share of resources invested in R&D turns out not to be monotonically increasing in the product market power and its correlation with the equilibrium output growth rate is not unambiguous. Copyright (c) Scottish Economic Society 2003.

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Article provided by Scottish Economic Society in its journal Scottish Journal of Political Economy.

Volume (Year): 50 (2003)
Issue (Month): 4 (09)
Pages: 417-439

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Handle: RePEc:bla:scotjp:v:50:y:2003:i:4:p:417-439
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