The Dynamics of Economic Integration : Theory and Policy

Integration affects economic growth mainly through two different channels: The scale-effect channel and the factor-reallocation channel. In order to investigate both channels within a unifying framework, we employ a simple descriptive growth model. The scale-effect channel increases either the long-run growth rate or the level of the balanced growth path. The factor-reallocation channel is ambiguous. It is shown under which conditions this mechanism induces either a rise or a fall in the long-run growth rate. In addition, a number of policy conclusions are drawn

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Year of publication:	2010
Authors:	Bretschger, Lucas
Other Persons:	Steger, Thomas M. (contributor)
Publisher:	[2010]: [S.l.] : SSRN
Subject:	Wirtschaftsintegration \| Economic integration \| Theorie \| Theory
Description of contents:	Abstract [papers.ssrn.com]