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International Trade and Growth: An Overview using the New Growth Theory

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  • Terry Roe
  • Hamid Mohtadi

Abstract

An overview of the new growth theory is provided from both an analytical and empirical perspective. Following a historical outline and a brief analytical sketch of the R&D-based models, the results from fitting two structural models to data are presented. Results show the relative impacts on growth from trade and R&D-based policies including technological spillovers from trade. The mechanism of intersectoral adjustments to the long-run growth path is also discussed. Insights provided by the theory are related to agriculture from the view of agriculture in the context of the broader economy within which it must compete for resources, and in terms of growth in agricultural factor productivity as evidenced by the recent growth in genetic engineering.

Suggested Citation

  • Terry Roe & Hamid Mohtadi, 2001. "International Trade and Growth: An Overview using the New Growth Theory," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 23(2), pages 423-440.
    • Handle: RePEc:oup:revage:v:23:y:2001:i:2:p:423-440.
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    File URL: http://hdl.handle.net/10.1111/1467-9353.00070
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    Cited by:

    1. Gutierrez, Luciano, 2002. "Why is Agricultural Labour Productivity higher in some countries than others?," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 3(1), pages 1-15, January.

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