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Distribution services and economic growth

Author

Listed:
  • Yi Jin

    (The University of Kansas)

  • Zhixiong Zeng

    (Peking University)

Abstract

We analyze how the presence of distribution services affects an economy's long-run growth. We show that in an endogenous growth model, increases in the unit distribution requirement lower the economy''s balanced growth rate by reducing the proportion of aggregate employment allocated to the manufacturing sector. This contrasts with the neutrality result in the exogenous growth case.

Suggested Citation

  • Yi Jin & Zhixiong Zeng, 2006. "Distribution services and economic growth," Economics Bulletin, AccessEcon, vol. 15(10), pages 1-6.
    • Handle: RePEc:ebl:ecbull:eb-06o40006
    as

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    References listed on IDEAS

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    JEL classification:

    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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