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Endogenous Growth and South-North Trade

Author

Listed:
  • Goo, Youngwan

    () (SAMSUNG Research Institute of Finance)

  • Lee, Seonghoon

    () (US Bureau of Census)

Abstract

In this article, we develop an endogenous growth model to analyze the impact of knowledge spillovers, the disparity in initial endowments and production technologies on economic growth of two trading regions. We found that the growth rates of technology development of the two regions become uneven unless they have an identical initial steady-state labor allocation between technology development and intermediate inputs. Trade in intermediate goods and knowledge spillovers improve welfare in both regions.

Suggested Citation

  • Goo, Youngwan & Lee, Seonghoon, 2002. "Endogenous Growth and South-North Trade," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 17, pages 554-569.
  • Handle: RePEc:ris:integr:0208
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    More about this item

    Keywords

    Endogenous Growth; Monopolistic Differentiated Product Market; Even (Equal) and Uneven (Unequal) Growth; Knowledge Spillover;

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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