The Effect of Globalization in an Endogenous Growth Model with Heterogeneous Firms and Endogenous International Spillovers: Note
This paper shows that globalization increases (decreases) the growth rate if and only if the beachhead cost for the domestic market is strictly higher (lower) than that for the foreign market in a endogenous growth model with firm heterogeneity, international trade, and endogenous international spillover under specified necessary and sufficient conditions for exporting firms being more productive than non-exporting firms.
|Date of creation:||Aug 2013|
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- Taiji Furusawa & Hideo Konishi, 2013. "International Trade and Income Inequality," Boston College Working Papers in Economics 849, Boston College Department of Economics, revised 01 Nov 2016.
- Michael A. Clemens & Jeffrey G. Williamson, 2004. "Why did the Tariff--Growth Correlation Change after 1950?," Journal of Economic Growth, Springer, vol. 9(1), pages 5-46, 03.
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