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On Endogenous Product Cycles under Costly Trade

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  • Cristobal Campoamor, Adolfo

Abstract

The catchup and convergence of developing economies with the Western world is a major experience in modern history. In this paper we explore the role played jointly by technological imitation and trade liberalization in a North-South endogenous growth model. We prove that a gradual trade liberalization between South and North will promote convergence at any level of initial trade costs if the Southern economies are fully industrialized, their R&D potential is relatively low and the elasticity of substitution among manufactures is high enough.

Suggested Citation

  • Cristobal Campoamor, Adolfo, 2015. "On Endogenous Product Cycles under Costly Trade," MPRA Paper 67289, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:67289
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    References listed on IDEAS

    as
    1. Segerstrom, Paul & Dinopoulos, Elias, 2006. "North-South Trade and Economic Growth," CEPR Discussion Papers 5887, C.E.P.R. Discussion Papers.
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    Keywords

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    JEL classification:

    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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