The Enlargement of an Integrated Economy and Growth

Cheng-te Lee ()
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Cheng-te Lee: Department of International Trade, Chinese Culture University

Economics Bulletin, 2009, vol. 29, issue 2, 1499-1509

Abstract: This paper explores the growth effects of the enlargement of an integrated economy by making use of a many-country equilibrium growth model with heterogeneous labor. We prove that the impact of the number of member countries on the integrated economy''s growth rate is positive. In addition, we also analyze the growth effects of the individual countries after integration. We find that enlargement may be detrimental to the economic growth of advanced countries.

Keywords: diversity; enlargement; growth; factor mobility (search for similar items in EconPapers)
JEL-codes: F0 F2 (search for similar items in EconPapers)
Date: 2009-06-28
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Citations: View citations in EconPapers (2)

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