Start-up costs and pecuniary externalities as barriers to economic development

• 成果类型: Article
• 署名作者: Ciccone, A; Matsuyama, K
• 署名单位: Northwestern University
• 刊物名称: JOURNAL OF DEVELOPMENT ECONOMICS
• ISSN/ISSBN: 0304-3878
• DOI: 10.1016/0304-3878(95)00052-6
• 发表日期: 1996
• 页码: 33-59
• 关键词: development traps; the Hicks-Allen complementarity; increasing returns due to specialization; monopolistic competition; Roundabout production

摘要

We use a dynamic monopolistic competition model to show that an economy that inherits a small range of specialized inputs can be trapped into a lower stage of development, The limited availability of specialized inputs forces the final goods producers to use a labor intensive technology, which in turn implies a small inducement to introduce new intermediate inputs. The start-up costs, which make the intermediate inputs producers subject to dynamic increasing returns, and pecuniary externalities that result from the factor substitution in the final goods sector, play essential roles in the model.