Neoclassical Growth, Manufacturing Agglomeration, and Terms of Trade
نویسنده
چکیده
This paper presents an integrated view of economic growth, development traps, and economic geography. We explain why there is income convergence among some countries (neoclassical regime) and income divergence among others (poverty trap regime). Income convergence (divergence) and manufacturing industry di¤usion (agglomeration) are re-enforcing each other in a cumulative process. Moreover, trade openness may trigger a catch-up process of an economy that is stuck in a “poverty trap”. This catch-up is characterized by an increase in the investment-to-GDP ratio and an improvement of the terms of trade. JEL Classi...cation: F12, O41
منابع مشابه
The Effects of China's Growth in Manufacturing Sector in the U.S. Economy
T his paper investigates the gain of bilateral trade between China and U.S. in manufacturing sectors when both countries play a role in asymmetric (biased) growth of international trade. Our model includes a special case of Biased Growth Theory in international trade. We collected labor productivity, export and import data by using classification of manufacturing industries, for U.S...
متن کاملProducers' Service Improvements and Manufacturing Agglomeration When Taking Trade Costs as a Mediator Variable: Mechanism and evidence from China
Most studies about the effects of producers’ services on manufacturing agglomeration focus on the effects themselves while neglecting the mechanism that such effects spread. By stressing the key role of trade costs in the process of manufacturing agglomeration, this paper identifies a chain of effects from producers’ service improvements to manufacturing agglomeration via changing trade costs a...
متن کاملEconomic integration and agglomeration in a middle product economy
The paper examines the interactions between economic integration and population agglomeration in a middle product economy displaying neoclassical growth. There are two vertically integrated economies. Each consists of a large number of final good competitive firms operating plants in both regions, and a large number of intermediate goods monopolistically competitive firms operating each in only...
متن کاملThe Effects of Trade Integration, Globalization and Foreign Direct Investments on Employment in Iranian Manufacturing Sector
This paper focuses on two major aspects of globalization: international trade and FDI and their impacts on manufacturing employment in Iran and study whether foreign direct investment and trade expansion with Asian and European partner played any role in shaping the Iranian manufacturing employment structure. This study incorporates globalization (KOF index), trade integration and FDI into a si...
متن کاملThe Role of Financial Policies on the Selection of Commovment among Macroeconomic Variables in Business cycles Deviations under Commitment Conditions
The economic fluctuations and the changing business circles of a country play an important role in the economic performance and fate of any country, which is very important and important when considering the economic situation at a time of boom or recession under accrual conditions. In this paper, In the framework of the Ramsey model, the basis of microeconomics is extracted using neoclassical ...
متن کامل