Does an enlargement of a common market stimulate growth and convergence?

• 成果类型: Article
• 署名作者: Walz, U
• 署名单位: Eberhard Karls University of Tubingen
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/S0022-1996(98)00034-8
• 发表日期: 1998
• 页码: 297-321
• 关键词: endogenous growth; regional integration; TRADE; factor mobility

摘要

We address the effects of a step-wise enlargement of a common market from two to three countries by using a three-country endogenous growth model. We show that integration of a third, technologically lagging country via trade liberalization causes a reallocation of resources which stimulates overall growth. Liberalizing trade with the third country leads to income convergence between the two established countries. Furthermore, we look at the impact of a liberalization of factor markets. (C) 1998 Published by Elsevier Science B.V.