Growth in open economies

Sergio Rebelo ()

No 799, Policy Research Working Paper Series from The World Bank

Abstract: The author surveys recent growth models that try to explain the diversity among countries in rates of economic growth. The author finds that these models can generate differences in growth rates only in the absence of international capital markets. Under these models, if there were free international capital mobility, the growth rate of consumption and GNP would quickly be equalized all over the world. The author describes a simple modification of standard preferences that eliminates this implausible equalization of growth and is consistent with the fact that the savings rate is lower in poor countries than in rich countries.

Keywords: Environmental Economics&Policies; Economic Growth; Achieving Shared Growth; Inequality; Economic Theory&Research (search for similar items in EconPapers)
Date: 1991-11-30
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Citations: View citations in EconPapers (6)

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Related works:
Journal Article: Growth in open economies (1992)
Working Paper: Growth in Open Economies (1992)
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Persistent link: https://EconPapers.repec.org/RePEc:wbk:wbrwps:799

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