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The Enlargement of an Integrated Economy and Growth

Author

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  • Cheng-te Lee

    (Department of International Trade, Chinese Culture University)

Abstract

This paper explores the growth effects of the enlargement of an integrated economy by making use of a many-country equilibrium growth model with heterogeneous labor. We prove that the impact of the number of member countries on the integrated economy''s growth rate is positive. In addition, we also analyze the growth effects of the individual countries after integration. We find that enlargement may be detrimental to the economic growth of advanced countries.

Suggested Citation

  • Cheng-te Lee, 2009. "The Enlargement of an Integrated Economy and Growth," Economics Bulletin, AccessEcon, vol. 29(2), pages 1499-1509.
    • Handle: RePEc:ebl:ecbull:eb-09-00271
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    File URL: http://www.accessecon.com/Pubs/EB/2009/Volume29/EB-09-V29-I2-P92.pdf
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    Cited by:

    1. Cheng-te Lee & Chen Fang & Kuo-hsing Kuo, 2014. "Common Market and Equilibrium Growth," Economics Bulletin, AccessEcon, vol. 34(1), pages 480-493.
    2. Kuo-Hsing Kuo & Cheng-Te Lee, 2017. "Economic Integration, Growth and Income Distribution," Australian Economic Papers, Wiley Blackwell, vol. 56(1), pages 59-71, March.

    More about this item

    Keywords

    diversity; enlargement; growth; factor mobility;
    All these keywords.

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • F0 - International Economics - - General

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