Distribution services and economic growth

Yi Jin () and Zhixiong Zeng
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Yi Jin: The University of Kansas

Economics Bulletin, 2006, vol. 15, issue 10, 1-6

Abstract: We analyze how the presence of distribution services affects an economy's long-run growth. We show that in an endogenous growth model, increases in the unit distribution requirement lower the economy''s balanced growth rate by reducing the proportion of aggregate employment allocated to the manufacturing sector. This contrasts with the neutrality result in the exogenous growth case.

Keywords: Distribution; services (search for similar items in EconPapers)
JEL-codes: O4 (search for similar items in EconPapers)
Date: 2006-09-25
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