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Free trade and economic growth: The role of talent diversity

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  • Chen Fang
  • Kuo‐Hsing Kuo
  • Cheng‐Te Lee

Abstract

To analyse the impact of the diversity of talent distribution on the equilibrium growth rate, this paper develops an equilibrium growth model with heterogeneous labor. We show that the growth effect after free trade depends on the diversity effect and the trade effect. In addition, we prove that if talent diversity is great enough then opening trade will stimulate economic growth. In contrast, if talent diversity is small enough then trade openness is detrimental to economic growth.

Suggested Citation

  • Chen Fang & Kuo‐Hsing Kuo & Cheng‐Te Lee, 2020. "Free trade and economic growth: The role of talent diversity," Bulletin of Economic Research, Wiley Blackwell, vol. 72(1), pages 1-13, January.
    • Handle: RePEc:bla:buecrs:v:72:y:2020:i:1:p:1-13
    DOI: 10.1111/boer.12201
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    Cited by:

    1. Wunhong Su & Chunlin Wang & Zhong‐qin Su, 2024. "Association between foreign background of executives and firm goodwill impairment risk," Bulletin of Economic Research, Wiley Blackwell, vol. 76(1), pages 223-250, January.

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