Industry Concentration, Knowledge Diffusion and Economic Growth Without Scale Effects

Patterns of technology, industry concentration, and productivity growth without scale effects

This paper investigates the relationship between geographic patterns of industry and economic growth in a two-country model of trade with no scale effect, where productivity growth is generated by firm investment in process innovation. We find that dispersed equilibria with industry located in both countries produce higher growth rates than concentrated equilibria with all industry located in o...

Growth without Scale Effects

Growth: With or Without Scale Effects?

The discovery of new ideas is the engine of growth in many recent growth models. As emphasized by Paul Romer (1986, 1990), ideas are different from most goods analyzed in economics in that they are nonrivalrous: the use of an idea by one person does not preclude, at a technological level, the simultaneous use of the idea by another person, or even by many people. This leads to a tight link betw...

The Nexus between Economic Growth and Intra-Industry Trade

According to traditional trade theories, foreign trade affects economic growth via several channels such as knowledge and technology spillover, improvement of resources allocation, increasing productivity and competitiveness. Within the framework of new trade theories, the effect of foreign trade on economic growth is ambiguous, and this effect depends on the combination of the different effect...

ECONOMIC GROWTH AND INTRA - INDUSTRY TRADE Nuno

The purpose of this article is to investigate the impact of marginal intra-industry trade on economic growth. The results indicate that economic growth is a dynamic process. The change of intra-industry has a positive impact on economic growth. This paper confirms relevant theoretical hypothesis as foreign direct investment and globalization promote the economic growth.