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Virtual integration and endogenous growth in the world economy

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  • Toru Kikuchi

Abstract

This study develops a three-country model of endogenous growth that captures the role of the interconnection of country-specific communications networks (i.e., virtual integration), which affects the productivity of R&D activity through an increase in stock of knowledge capital. The number of countries connected to internationally interconnected networks is found to determine the structure of dynamic comparative advantages. That is, countries with interconnected networks have a dynamic comparative advantage in differentiated products that require communication and activities. In the connected countries, researchers gain from efficient activity through the utilization of the greater stock of knowledge capital. Copyright International Atlantic Economic Society 2004

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  • Toru Kikuchi, 2004. "Virtual integration and endogenous growth in the world economy," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 10(4), pages 289-296, November.
    • Handle: RePEc:kap:iaecre:v:10:y:2004:i:4:p:289-296:10.1007/bf02295142
    DOI: 10.1007/BF02295142
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    References listed on IDEAS

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    1. Francisco L. Rivera-Batiz & Luis A. Rivera-Batiz, 2018. "Economic Integration and Endogenous Growth," World Scientific Book Chapters, in: Francisco L Rivera-Batiz & Luis A Rivera-Batiz (ed.), International Trade, Capital Flows and Economic Development, chapter 1, pages 3-32, World Scientific Publishing Co. Pte. Ltd..
    2. van de Klundert, Theo & Smulders, Sjak, 1996. "North-South knowledge spillovers and competition: convergence versus divergence," Journal of Development Economics, Elsevier, vol. 50(2), pages 213-232, August.
    3. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
    4. Richard G. Harris, 1995. "Trade and Communication Costs," Canadian Journal of Economics, Canadian Economics Association, vol. 28(s1), pages 46-75, November.
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    Cited by:

    1. Li, Na & Jin, Yanling & Li, Ying & Ma, Xinyuan, 2023. "How can visual communications aid in renewable energy development?," Renewable Energy, Elsevier, vol. 208(C), pages 702-708.

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