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Non-Scale Growth, Endogenous Comparative Advantages, and Industrialization

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  • Thomas Christiaans

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Abstract

This paper develops a two-sector non-scale growth model and investigates the relationship between international trade, growth, and industrialization. It is shown that the counterfactual prediction of new growth theories regarding a positive effect of population growth on the growth rate of per capita income is alleviated in consideration of international trade. While the growth-trade linkage is positive in most cases, it is negative if the rate of population growth is relatively large and the initial capital stock is relatively small. As the timing of the switch from autarky to free trade affects the process of industrialization, trade policy can influence long-run growth rates even in non-scale growth models.

Suggested Citation

  • Thomas Christiaans, 2003. "Non-Scale Growth, Endogenous Comparative Advantages, and Industrialization," Volkswirtschaftliche Diskussionsbeiträge 113-03, Universität Siegen, Fakultät Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht.
  • Handle: RePEc:sie:siegen:113-03
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    File URL: http://www.wiwi.uni-siegen.de/vwl/repec/sie/papers/113-03.pdf
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    References listed on IDEAS

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    1. Marco Runkel, 1999. "Product Durability, Solid Waste Management and Market Structure," Volkswirtschaftliche Diskussionsbeiträge 78-99, Universität Siegen, Fakultät Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht.
    2. Walter Buhr, 2003. "What is infrastructure?," Volkswirtschaftliche Diskussionsbeiträge 107-03, Universität Siegen, Fakultät Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht.
    3. Rüdiger Pethig, 1993. "TV-Monopoly, Advertising and Program Quality," Volkswirtschaftliche Diskussionsbeiträge 45-93, Universität Siegen, Fakultät Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht.
    4. Rüdiger Pethig, 2001. "Massenmedien, Werbung und Märkte. Eine wirtschaftstheoretische Analyse," Volkswirtschaftliche Diskussionsbeiträge 100-01, Universität Siegen, Fakultät Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht.
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    More about this item

    Keywords

    Industrialization; Growth-Trade Linkage; Learning by Investment;

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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