IDEAS home Printed from https://ideas.repec.org/a/eme/jespps/v39y2012i5p590-603.html
   My bibliography  Save this article

Specialization and market development as engines of growth

Author

Listed:
  • Kerk L. Phillips

Abstract

Purpose - The purpose of this paper is to explain the following stylized facts. First, the share of household production in total output has fallen over time as the economy has grown. Second, services as a percent of GDP have risen at the same time. Design/methodology/approach - This paper constructs an original model of growth based on Adam Smith's notions of specialization and extent of the market. Growth depends on the specialization of labor in market production and learning‐by‐doing in transactions services. It is a model of sustained, but not infinite, growth. Findings - It is found that the model can replicate the above stylized facts for reasonable parameterizations. Originality/value - This paper shows that it is possible to build growth models that match the historic experience without relying in unbounded growth. Models like this may be very useful in understanding the processes that drive growth.

Suggested Citation

  • Kerk L. Phillips, 2012. "Specialization and market development as engines of growth," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 39(5), pages 590-603, September.
    • Handle: RePEc:eme:jespps:v:39:y:2012:i:5:p:590-603
    DOI: 10.1108/01443581211259491
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/01443581211259491/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1108/01443581211259491/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1108/01443581211259491?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:jespps:v:39:y:2012:i:5:p:590-603. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.