Does globalization foster economic growth?
Tadashi Morita (),
Hajime Takatsuka () and
Kazuhiro Yamamoto ()
Additional contact information
Hajime Takatsuka: Graduate School of Management, Kagawa University
No 12-11, Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics
This article focuses on two distinct faces of globalization: the decrease in trade costs of goods and the decline of affiliation costs of joint ventures by foreign firms with local firms. The decrease of affiliation costs drives relocation of firms from the North to the South. When the market size of the North is relatively small (resp. large), the growth rate monotonously decreases (resp. first decreases and rises after this) with a decline of affiliation costs. In the case of lowering trade costs, the firm share in the North evolves as a U-shaped curve (resp. monotonously increases) when the market size of the North is relatively small (resp. large). Growth rates are raised with agglomeration in the North. Finally, we present some welfare implications.
Keywords: trade costs; affiliation costs; growth rates; innovation sector (search for similar items in EconPapers)
JEL-codes: F0 O31 (search for similar items in EconPapers)
Pages: 37 pages
New Economics Papers: this item is included in nep-pbe
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Journal Article: Does Globalization Foster Economic Growth? (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:osk:wpaper:1211
Access Statistics for this paper
More papers in Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Yuka Sawazaki ().