Theoretical and Applied Economics
No. 2 / 2019 (619), Summer
Trade in a two sector endogenous growth model with two accumulating factors
University of Greifswald, Germany
Abstract. This paper provides an endogenous growth model including technology diffusion induced by openness. A two sector model composed of a consumption good sector and an education sector shows that the openness leads to a compensation of the lack considering the human capital stock. It is a comparison between a relatively less developed country, which does not use physical capital in the education sector, and a relatively developed country using both, human and physical capital in the education sector. By importing a relatively human capital intensive good, the relatively less developed country benefits from technology diffusion. This paper shows, that introducing trade implies a higher growth rate than in a closed economy.
Contents
The education and training. Priorities of the European Union
Posted offers in exogenous networks: A theoretical application and experimental results
The role of Japan in the development of emerging markets in Asia. Key lessons learned for China
Empirical examination of the stability of expectations – Augmented Phillips Curve for developing and developed countries
The causality between economic growth and stock market in developing and developed countries: Toda-Yamamoto approach
Government failure vs. Market failure. The implications of incomplete information
Foreign direct investment and total factor productivity in South Asia
The effects of political and financial risks on foreign direct investments to the MENAT countries
Exploring the nexus between macroeconomic variables and stock market returns in Germany: An ARDL Co-integration approach
Income inequalities and economic convergence in CEE countries
Exchange rate regimes and its impact on growth: An empirical analysis of BRICS countries
Dynamics of business cycle and long-term economic growth of Pakistan
Per capita gross domestic product and welfare of Gabonese households: A VAR model with exogenous hypothesis
Co-integration with regime shift between government expenditure and poverty reduction in Algeria
Trade in a two sector endogenous growth model with two accumulating factors
What discriminates the welfare outcomes of children in India. A multiple discriminant analysis in selected states