Endogenous Growth and South-North Trade

Goo, Youngwan; Lee, Seonghoon

doi:2002.17.3.554

Journal of Economic Integration 2002 September;17(3) :554-569.
DOI: https://doi.org/10.11130/jei.2002.17.3.554

Endogenous Growth and South-North Trade

Youngwan Goo, Seonghoon Lee

SAMSUNG Research Institute of Finance
US Bureau of Census

ABSTRACT

In this article, we develop an endogenous growth model to analyze the impact of knowledge spillovers, the disparity in initial endowments and production technologies on economic growth of two trading regions. We found that the growth rates of technology development of the two regions become uneven unless they have an identical initial steady-state labor allocation between technology development and intermediate inputs. Trade in intermediate goods and knowledge spillovers improve welfare in both regions. JEL Classifications (D43, F12, L13, O12, O30)

Keywords: Endogenous Growth | Monopolistic Differentiated Product Market | Even (Equal) and Uneven (Unequal) Growth | Knowledge Spillover

REFERENCE

1.	Goo, Youngwan and Hyun Park (1999), International Imperfect Competition and LongRun Growth, mimeo.

2.	Boldrin, Michele and Jose A. Scheinkman (1988), Learning by Doing, International trade and Growth: A Note, in SFI Studies in Science of Complexity, Addison-Wesly, Reading MA.