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Endogenous growth in open economies: a surveys

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  • Alberto Franco Pozzolo

    (Universita' degli Studi del Molise and Ente Luigi Einaudi)

Abstract

Endogenous growth has set a new paradigm for macroeconomic analysis. This paper overviews the most relevant theoretical contributions of this literature for the analysis of open economies, highlighting their implications both for the effects of crosscountry integration on output convergence and for the overall growth performance of the integrated economy, as compared to that of an identical group of autarchic countries. The literature is divided into three major classes, studying, respectively, the effects of factor mobility, the role of international trade, and the consequences of technology diffusion. The main conclusion is that knowledge spillovers can go a long way in explaining the differences in growth performances across countries, but additional research is needed to completely understand the mechanisms driving their international diffusion.

Suggested Citation

  • Alberto Franco Pozzolo, 2004. "Endogenous growth in open economies: a surveys," Temi di discussione (Economic working papers) 527, Bank of Italy, Economic Research and International Relations Area.
  • Handle: RePEc:bdi:wptemi:td_527_04
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    Cited by:

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    2. R. Basile & S. Usai, 2012. "Analysis of regional endogenous growth," Working Paper CRENoS 201211, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.

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    More about this item

    Keywords

    endogenous growth; open economies; international spillovers;
    All these keywords.

    JEL classification:

    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • F2 - International Economics - - International Factor Movements and International Business

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