Growth in Open Economies
This paper provides a survey of recent growth models that attempt to explain the cross-country diversity in rates of economic growth. It shows that these models can only generate differences in growth rates in the absence of international capital markets. With free international capital mobility they imply that the growth rate of consumption and GNP would be quickly equalized all over the world. This paper describes a simple modification of standard preferences that eliminates this implausible growth-equalization result and is consistent with the fact that the savings rate is lower in poor countries than in rich countries.
|Date of creation:||Jun 1992|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: 44 - 20 - 7183 8801
Fax: 44 - 20 - 7183 8820
|Order Information:|| Email: |
When requesting a correction, please mention this item's handle: RePEc:cpr:ceprdp:667. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.