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Economic Integration and Growth under Intergenerational Financing of Human Capital Formation

Author

Listed:
  • Michel, P.
  • Vidal., J.-P.

Abstract

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).

Suggested Citation

  • Michel, P. & Vidal., J.-P., 1998. "Economic Integration and Growth under Intergenerational Financing of Human Capital Formation," Cambridge Working Papers in Economics 9809, Faculty of Economics, University of Cambridge.
    • Handle: RePEc:cam:camdae:9809
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    Cited by:

    1. Marion Davin & Karine Gente & Carine Nourry, 2012. "Social optimum in an OLG model with paternalistic altruism," Economics Bulletin, AccessEcon, vol. 32(4), pages 3417-3424.
    2. Philippe Monfort & David de la Croix, 2000. "Education funding and regional convergence," Journal of Population Economics, Springer;European Society for Population Economics, vol. 13(3), pages 403-424.
    3. Zhenshan Yang, 2019. "Threshold Effect of Poverty Alleviation Funds on Human Capital Accumulation: A Case Study of Impoverished Counties in China," Sustainability, MDPI, vol. 11(3), pages 1-12, February.
    4. Zhenshan Yang, 2023. "Human capital space: a spatial perspective of the dynamics of people and economic relationships," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 10(1), pages 1-14, December.
    5. Davin, Marion & Gente, Karine & Nourry, Carine, 2018. "How crucial are preferences for non-tradable goods and cross-country sectoral TFP gap for integration?," Journal of Macroeconomics, Elsevier, vol. 57(C), pages 166-181.
    6. Ronald Ravinesh Kumar & Peter J. Stauvermann, 2023. "International Borrowing and Lending in the Presence of Oligopolistic Competition," JRFM, MDPI, vol. 16(8), pages 1-26, July.
    7. Davin, Marion & Gente, Karine & Nourry, Carine, 2015. "Should a country invest more in human or physical capital?," Mathematical Social Sciences, Elsevier, vol. 76(C), pages 44-52.

    More about this item

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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