Steger, Thomas M.
- Working Paper
Rights / licenseIn Copyright - Non-Commercial Use Permitted
Integration affects economic growth mainly through two dif-ferent channels: The scale-effect channel and the factor-reallocationchannel. In order to investigate both channels within a unifyingframework, we employ a simple descriptive growth model. The scale-effect channel increases either the long-run growth rate orthe level of the balanced growth path. The factor-reallocationchannel is ambiguous. It is shown under which conditions thismechanism induces either a rise or a fall in the long-run growthrate. In addition, a number of policy conclusions are drawn Show more
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Journal / seriesEconomics Working Paper Series
PublisherETH Zurich, Institute of Economic Research (WIF)
SubjectInternational trade; Economic integration; Economic growth; Scale effects; Factor reallocation
Organisational unit02045 - Dep. Geistes-, Sozial- u. Staatswiss. / Dep. of Humanities, Social and Pol.Sc.
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