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Growth and the Enlargement of a Common Market

Author

Listed:
  • Cheng-Te Lee

    (Department of International Trade, Chinese Culture University)

  • Shang-Fen Wu

    (Department of International Trade, Chinese Culture University)

  • Chen Fang

    (Department of International Trade, Chinese Culture University)

Abstract

This paper explores the growth effects of the enlargement of a common market from two to three countries by making use of a three-country equilibrium growth model with heterogeneous labour. We prove that the enlargement will stimulate the backward countries’ economic growth. In addition, we also demonstrate that the higher the new member country’s average talent level is, the more likely it is that the enlargement can speed up the initial integrated-economy’s economic growth.

Suggested Citation

  • Cheng-Te Lee & Shang-Fen Wu & Chen Fang, 2013. "Growth and the Enlargement of a Common Market," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 3(6), pages 1-3, December.
    • Handle: RePEc:spp:jkmeit:1415
    as

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    References listed on IDEAS

    as
    1. Giovanni Maggi & Gene M. Grossman, 2000. "Diversity and Trade," American Economic Review, American Economic Association, vol. 90(5), pages 1255-1275, December.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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