Economic integration and growth under intergenerational financing of human-capital formation
This paper examines the patterns of economic integration and endogenous growth in a two-country overlapping generations world in which the formation of human capital is driven by intergenerational paternalistic altruism. It explores the influence of cross-border external effects in human capital on growth. Interestingly, world integration can enhance (reduce) long-run growth in both countries if cross-border external effects in human capital are strong enough (too weak).
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Volume (Year): 72 (2000)
Issue (Month): 3 (October)
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