INTEGRATION AMONG UNEQUALS

doi:10.1016/0166-0462(93)90051-F

1993-07-01

PRE

Luis A Rivera-Batiz

Danyang Xie

DOI：10.1016/0166-0462(93)90051-F

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摘要

En 中文

In this paper we show that in the case of two countries with different sizes and divergent resource endowments, the presumption that growth rates increase in both countries when the size of the market expands through integration, evaporates. Allocation effects that contract the research sector in the human capital-abundant country can in principle reverse the growth-prompting effects of scale. Sufficiently strong diffusion of technology is crucial for a positive growth effect. When one country is chronically non-innovating, unskilled labor migration towards its innovating trading partner is growth-reducing. However, our analysis suggests that when integration is accompanied by migration, the marginal effects of the latter are small relative to the effects obtainable from integration.

Keyword:

ENDOGENOUS TECHNOLOGICAL-CHANGE

GROWTH

TRADE