IDEAS home Printed from https://ideas.repec.org/p/mil/wpdepa/2009-013.html
   My bibliography  Save this paper

Trade and growth in a two-country model with home production and uneven technological spillovers

Author

Listed:
  • Luigi BONATTI
  • Giulia FELICE

Abstract

We develop a two-country growth model distinguishing between a market sector producing services that can also be home-produced and a market sector producing goods without home-produced substitutes. The former is a technologically ?stagnant? sector, while the latter is subject to learning by doing and technological spillovers. This distinction coincides in the model with the distinction between the sector producing non tradables and the sector producing internationally tradable goods. We study how differentials in labor tax rates across countries, which determine differences in the allocation of households? time between market activities and home activities, influence also the mix of tradable and non-tradable goods that characterizes the market output of each country, thus affecting their bilateral trade balance and growth rates.

Suggested Citation

  • Luigi BONATTI & Giulia FELICE, 2009. "Trade and growth in a two-country model with home production and uneven technological spillovers," Departmental Working Papers 2009-013, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    • Handle: RePEc:mil:wpdepa:2009-013
    as

    Download full text from publisher

    File URL: http://wp.demm.unimi.it/tl_files/wp/2009/DEMM-2009_013wp.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Market time; employment rate; non-tradable goods; two-country model; endogenous growth;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mil:wpdepa:2009-013. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: DEMM Working Papers (email available below). General contact details of provider: https://edirc.repec.org/data/damilit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.