Economics at your fingertips  

Endogenous growth in a North - South framework with human capital accumulation and technology transfer

Jayati Bhattacharya and Ajitava Raychaudhuri ()

The Journal of International Trade & Economic Development, 2004, vol. 13, issue 1, 23-56

Abstract: The purpose of this paper is to study the long run evolution of a world economy (divided into a North and a South) and to re-evaluate some conventional ideas regarding the inter-relation between the two economies. Here, a technologically backward South adopts the Northern technology by importing R&D-intensive intermediate inputs from the North. However the capability of its technology adoption (shown by the number of varieties of intermediate goods it uses) is constrained by its level of human capital. The results of the model suggest that (i) at the steady state, the two countries need not grow at the same rate and that the South can manipulates its own growth rate, (ii) the terms of trade (TOT) may rise, fall or remain static at the long run steady state depending on the growth rates of the two regions. A decline in the TOT of the South is associated with a higher growth rate and higher welfare (under certain conditions). This conclusion follows as a result of the incorporation of endogenous growth theory that generates increasing returns to scale through the use of different varieties of intermediate goods.

Keywords: Endogenous growth; North - South; human capital; technology-transfer; terms of trade; increasing returns (search for similar items in EconPapers)
Date: 2004
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (text/html)
Access to full text is restricted to subscribers.

Related works:
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:

Ordering information: This journal article can be ordered from

DOI: 10.1080/0963819042000213534

Access Statistics for this article

The Journal of International Trade & Economic Development is currently edited by Pasquale Sgro, David E.A. Giles and Charles van Marrewijk

More articles in The Journal of International Trade & Economic Development from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().

Page updated 2022-03-27
Handle: RePEc:taf:jitecd:v:13:y:2004:i:1:p:23-56