EconPapers    
Economics at your fingertips  
 

Growth in a Small Open Economy

M. Benge and Graeme Wells

Working Papers from Australian National University - Department of Economics

Abstract: This paper provides a framework with which to analyse growth in a small economy with perfect capital mobility. It provides a diagrammatic representation of steady states which differs in interesting and important ways from the usual closed-economy Solow-Swan diagram. The paper also analyses model dynamics in response to shocks which perturb the steady state and it is shown that, by contrast to the closed-economy models which underpin much of the cross-section empirical work on income convergence, changes in the saving rate increase both the steady-state level of income and the half-life of income adjustment.

Keywords: GROWTH MODELS; ECONOMIC DEVELOPMENT; CAPITAL MOVEMENTS (search for similar items in EconPapers)
JEL-codes: F41 F43 O41 (search for similar items in EconPapers)
Pages: 27 pages
Date: 1998
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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: https://EconPapers.repec.org/RePEc:fth:aunaec:350

Access Statistics for this paper

More papers in Working Papers from Australian National University - Department of Economics THE AUSTRALIAN NATIONAL UNIVERSITY, DEPARTMENT OF ECONOMICS, RESEARCH SCHOOL of PACIFIC STUDIES, RESEARCH SCHOOL OF SOCIAL SCIENCES, G.P.O. 4, CANBERRA ACT 2601 AUSTRALIA..O. BOX 4 CANBERRA 2601 AUSTRALIA.. Contact information at EDIRC.
Bibliographic data for series maintained by Thomas Krichel ().

 
Page updated 2021-03-28
Handle: RePEc:fth:aunaec:350