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GTAP Resources: Resource Display

GTAP Resource #1539

"Stages of development in an Endogenous Growth Model with International Trade"
by Andersen, Lill and Kim Martin Lind


Abstract
In the paper we set up a model that encompasses three stages of development: a low-income stage characterised by factor accumulation, an intermediate stage of technology adoption and a high-income stage of R&D. The transition from one stage to a higher stage is determined endogenously. The transition from the low ´to the intermediate stage occurs as a result of international trade that enable domestic producers to adopt technolgies developed elsewhere. The transition to the high-income stage occures when the human capital stock reaches a critical level where R&D becomes a profitable activity. However, there is a danger of a developing country to be caught in an underdevelopment trap. We derive the characteristics of the development process for a closed economy, and consider the long-run characteristics of open economies.


Resource Details (Export Citation) GTAP Keywords
Category: 2004 Conference Paper
Status: Published
By/In: Presented at the 7th Annual Conference on Global Economic Analysis, Washington DC, USA
Date: 2004
Version:
Created: Andersen, L. (5/7/2004)
Updated: Andersen, L. (5/7/2004)
Visits: 1,848
No keywords have been specified.


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