IDEAS home Printed from https://ideas.repec.org/a/oup/qjecon/v109y1994i1p299-305..html
   My bibliography  Save this article

The Stability of Economic Integration and Endogenous Growth

Author

Listed:
  • Michael B. Devereux
  • Beverly J. Lapham

Abstract

This paper examines the transitional dynamics of economic integration in the two country endogenous growth model of Rivera-Batiz and Romer (1991) and in an extension by Rivera-Batiz and Xie (1992). It is shown that, in the absence of knowledge flows across countries economic integration will generically lead to a corner solution where only one country does all the R&D and the other specializes in manufactures. When countries are symmetric the world growth rate in this equilibrium will always be higher than in autarky. When countries differ in their human capital endowment, the world growth rate with trade is always greater than the autarky growth rate of the "low-growth"country, but may or may not be greater than the autarky growth rate of the "high-growth" country.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Michael B. Devereux & Beverly J. Lapham, 1994. "The Stability of Economic Integration and Endogenous Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 109(1), pages 299-305.
    • Handle: RePEc:oup:qjecon:v:109:y:1994:i:1:p:299-305.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.2307/2118436
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

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

    Other versions of this item:

    References listed on IDEAS

    as
    1. Francisco L. Rivera-Batiz & Luis A. Rivera-Batiz, 2018. "GATT, Trade, and Growth," World Scientific Book Chapters, in: Francisco L Rivera-Batiz & Luis A Rivera-Batiz (ed.), International Trade, Capital Flows and Economic Development, chapter 3, pages 71-81, World Scientific Publishing Co. Pte. Ltd..
    2. 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..
    3. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Uwe Walz, 1997. "Dynamic Effects of Economic Integration: A Survey," Open Economies Review, Springer, vol. 8(3), pages 309-326, July.
    2. Chu, Angus C. & Cozzi, Guido & Furukawa, Yuichi, 2016. "Unions, innovation and cross-country wage inequality," Journal of Economic Dynamics and Control, Elsevier, vol. 64(C), pages 104-118.
    3. Kollenbach, Gilbert, 2013. "Endogenous Growth with a Ceiling on the Stock of Pollution," MPRA Paper 50641, University Library of Munich, Germany.
    4. Li, Defu & Bental, Benjamin, 2023. "What determines the Direction of Technological Progress(2023.11.16)?," MPRA Paper 119211, University Library of Munich, Germany, revised 16 Nov 2023.
    5. Pozzolo, Alberto Franco, 2004. "Endogenous Growth in Open Economies - A Survey of Major Results," Economics & Statistics Discussion Papers esdp04020, University of Molise, Department of Economics.
    6. Reto Föllmi & Angela Fuest & Philipp an de Meulen & Martin Micheli & Torsten Schmidt & Lina Zwick, 2018. "Openness and productivity of the Swiss economy," Swiss Journal of Economics and Statistics, Springer;Swiss Society of Economics and Statistics, vol. 154(1), pages 1-21, December.
    7. Arjan Lejour & Vladimir Solanic & Paul Tang, 2009. "EU Accession and Income Growth: An Empirical Approach," Transition Studies Review, Springer;Central Eastern European University Network (CEEUN), vol. 16(1), pages 127-144, May.
    8. Ken‐ichi Hashimoto & Ryonghun Im, 2019. "Asset bubbles, labour market frictions and R&D‐based growth," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 52(2), pages 822-846, May.
    9. Carlos Humberto Ortiz & Javier Andrés Castro, 2008. "Technological Integration and Income Gaps," Revista Lecturas de Economía, Universidad de Antioquia, CIE, June.
    10. Christian Scholz & Georg Ziemes, 1999. "Exhaustible Resources, Monopolistic Competition, and Endogenous Growth," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 13(2), pages 169-185, March.
    11. Colantone, Italo & Crinò, Rosario, 2014. "New imported inputs, new domestic products," Journal of International Economics, Elsevier, vol. 92(1), pages 147-165.
    12. Dodzin, Sergei & Vamvakidis, Athanasios, 2004. "Trade and industrialization in developing economies," Journal of Development Economics, Elsevier, vol. 75(1), pages 319-328, October.
    13. Mónica L. Azevedo & Óscar Afonso & Sandra T. Silva, 2017. "Endogenous Growth and Intellectual Property Rights: A North–South Modelling Proposal with Population Ageing," Australian Economic Papers, Wiley Blackwell, vol. 56(1), pages 72-94, March.
    14. Trew, Alex, 2009. "Institutions and the Scale Effect," SIRE Discussion Papers 2009-51, Scottish Institute for Research in Economics (SIRE).
    15. Brennan, G. & Hamlin, A., 1993. "A revisionist view of the separation of powers," Discussion Paper Series In Economics And Econometrics 9314, Economics Division, School of Social Sciences, University of Southampton.
    16. Pinelopi Koujianou Goldberg & Amit Kumar Khandelwal & Nina Pavcnik & Petia Topalova, 2010. "Imported Intermediate Inputs and Domestic Product Growth: Evidence from India," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 125(4), pages 1727-1767.
    17. repec:ebl:ecbull:v:2:y:2002:i:1:p:1-15 is not listed on IDEAS
    18. Gancia, Gino & Zilibotti, Fabrizio, 2005. "Horizontal Innovation in the Theory of Growth and Development," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 3, pages 111-170, Elsevier.
    19. Azevedo, Mónica L. & Afonso, Óscar & Silva, Sandra T., 2014. "Endogenous growth and intellectual property rights: A north–south modeling proposal," Economic Modelling, Elsevier, vol. 38(C), pages 112-120.
    20. Henrekson, Magnus & Torstensson, Johan & Torstensson, Rasha, 1997. "Growth effects of European integration," European Economic Review, Elsevier, vol. 41(8), pages 1537-1557, August.
    21. Ortíz, Carlos Humberto, 2013. "Economic growth consequences of structural stagnation: A two-sector model of productive diversification," Revista Lecturas de Economía, Universidad de Antioquia, CIE, issue 78, pages 73-113, May.

    More about this item

    Statistics

    Access and download statistics

    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:oup:qjecon:v:109:y:1994:i:1:p:299-305.. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Oxford University Press (email available below). General contact details of provider: https://academic.oup.com/qje .

    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.