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Trade-induced investment-led growth

Author: Richard E Baldwin; Elena Seghezza; National Bureau of Economic Research.
Publisher: Cambridge, MA : National Bureau of Economic Research, ©1996.
Series: Working paper series (National Bureau of Economic Research), working paper no. 5582.
Edition/Format:   Print book : National government publication   Computer File : EnglishView all editions and formats
Database:WorldCat
Summary:
Abstract: This paper presents five theoretical openness-and-growth links that can account for trade-induced investment-led growth. The links are all demonstrated with neoclassical growth models developed in the context of trade models that allow for imperfect competition and scale economies. This sort of old-growth-theory-in-a-new-trade-model has not been thoroughly explored in the literature since the profession  Read more...
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Details

Material Type: Government publication, National government publication, Internet resource
Document Type: Book, Computer File, Internet Resource
All Authors / Contributors: Richard E Baldwin; Elena Seghezza; National Bureau of Economic Research.
OCLC Number: 34952154
Notes: "May 1996."
Description: 20, 4 pages : illustrations ; 22 cm.
Series Title: Working paper series (National Bureau of Economic Research), working paper no. 5582.
Responsibility: Richard E. Baldwin, Elena Seghezza.

Abstract:

Abstract: This paper presents five theoretical openness-and-growth links that can account for trade-induced investment-led growth. The links are all demonstrated with neoclassical growth models developed in the context of trade models that allow for imperfect competition and scale economies. This sort of old-growth-theory-in-a-new-trade-model has not been thoroughly explored in the literature since the profession skipped from old-growth-old-trade models straight to new-growth-new- trade models. Nonetheless, such models are necessary to explain several key aspects of the econometric evidence on trade and growth. For example, cross-country data suggests that openness influences growth only via its effect on investment, and suggests that openness promotes investment in all countries whatever the capital-intensive of their exports (contrary to predictions of the old-growth-old-trade models).

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