Evidence On Growth, Increasing Returns, And The Extent Of The Market

Alberto F. Ades and Edward Ludwig Glaeser ()

The Quarterly Journal of Economics, 1999, vol. 114, issue 3, pages 1025-1045

Abstract: If economic growth relies upon the extent-of-the-market, then openness will decrease the connection between initial income and later growth. Alternatively, learning-by-doing models suggest that wealth will be more positively correlated with growth in open economies, because trade causes advanced economies to specialize in products with more opportunities for learning. We examine twentieth century less developed countries and nineteenth century U. S. states. In both data sets, there is a much stronger correlation between growth and initial wealth among closed economies. These findings support the importance of the extent-of-the-market, and aggregate demand in fostering growth. © 2000 the President and Fellows of Harvard College and the Massachusetts Institute of Technology

Date: 1999
References: Add references at CitEc
Citations View citations in EconPapers (62) Track citations by RSS feed

Downloads: (external link)
http://www.catchword.com/cgi-bin/cgi?ini=bc&body=l ... 90801)114:3L.1025;1- (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Evidence on Growth, Increasing Returns and the Extent of the Market (1994)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:tpr:qjecon:v:114:y:1999:i:3:p:1025-1045

Ordering information: This journal article can be ordered from
http://mitpress.mit. ... me.tcl?issn=00335533

Access Statistics for this article

The Quarterly Journal of Economics is edited by Robert J. Barro, Edward L. Glaeser and Lawrence F. Katz

More articles in The Quarterly Journal of Economics from MIT Press
Series data maintained by Karie Kirkpatrick ().