Government Size, Trade and Growth

Gieyoung Lim
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Gieyoung Lim: Hankuk University of Foreign Studies

Korean Economic Review, 2003, vol. 19, 53-79

Abstract: We examine the effect of public sector size in an overlapping generations model in which human capital formation is endogeneous and economic growth depends crucially on the stock of human capital in the economy. First, we investigate how factor composition and growth rate are affected b y the different levels of fiscal policy in autarky. Second, we show that the tradce pattern and growth rate can be determined by the extent of fiscal policy in an open economy.

Keywords: Government size; human capital; trade; growth (search for similar items in EconPapers)
JEL-codes: F1 H2 H3 (search for similar items in EconPapers)
Date: 2003
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