Growth, Trade and Economic Institutions

Authors: Palokangas Tapio , Bjarne S. Jensen , Bos Dieter , Giacomo Corneo , Hjerppe Reino , Juha Honkatukia
Publisher: Springer
Edition: 1
Publish Year: 2005
ISBN: 9783211007938

Endogenous growth is examined from the viewpoint of economic history, institutions and international trade. The main results are the following. The variance in institutional quality can be explained by historical differences in biogeographical potential for early agriculture. The expansion of output can lead to dis-agglomeration. The patterns of growth are sensitive to the technology parameters of the capital-good industry. With capital intensive industries, the balanced growth path can exhibit local indeterminacy. Economies integrate, if the productivity of R&D does not vary too much for them. Other aspects examined are the equilibrium of a dynamic multi-sector economy, the political economy of employment protection and the relationship between technological change and the demand for skill-intensive activities.