An Inverted U-Relationship between Product Market Competition and Growth in an Extended Romerian Model: A Comment

Dominique Bianco

Rivista di Politica Economica, 2007, vol. 97, issue 5, 245-258

Abstract: This paper shows that the results of Bucci (2005) depend critically on the assumption that there are no difference between the intermediate goods share in final output, the returns of specialization and the degree of market power of monopolistic competitors. In this paper, we disentangle the market power parameter from the intermediate goods share in final output and the returns to specialization. The main result of this paper is the death of the inverted-U shape relationship between competition and growth. Indeed, we find a decreasing relationship between competition and growth which is due to the composition of two negative effects on growth: resource allocation and Schumpeterian effects.

JEL-codes: O31 O41 (search for similar items in EconPapers)
Date: 2007
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www.rivistapoliticaeconomica.it/2007/set-ot/bianco.pdf

Related works:
Working Paper: An inverted-U relationship between product market competition and Growth in an extended romerian model: A comment (2007)
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: https://EconPapers.repec.org/RePEc:rpo:ripoec:v:97:y:2007:i:5:p:245-258

Access Statistics for this article

Rivista di Politica Economica is currently edited by Gustavo Piga

More articles in Rivista di Politica Economica from SIPI Spa
Bibliographic data for series maintained by Sabrina Marino ().