Quality, trade, and growth

Research output: Journal PublicationsJournal Article (refereed)Researchpeer-review

8 Citations (Scopus)

Abstract

This paper analyzes the roles of product quality and increasing returns in international division of labor and economic development. Because the qualities of different intermediate goods are highly complementary in producing the quality of the final good, a poor economy will choose to be in autarky if its average level of human capital is sufficiently low. Thus, the heterogeneity of human capital may hamper the division of labor. Further, by linking quality, trade and growth, this model simultaneously explains the East Asian Miracle and the empirical finding of conditional convergence.
Original languageEnglish
Pages (from-to)271-291
Number of pages21
JournalJournal of Economic Behavior and Organization
Volume55
Issue number2
DOIs
Publication statusPublished - 1 Oct 2004

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Trade and growth
Human capital
Economic development
Asia
Intermediate goods
Conditional convergence
Division of labor
International division of labour
Product quality
Increasing returns
Growth model

Keywords

  • Extent of the market
  • Growth
  • Heterogeneity of human capital
  • Quality

Cite this

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Quality, trade, and growth. / FAN, Chengze, Simon.

In: Journal of Economic Behavior and Organization, Vol. 55, No. 2, 01.10.2004, p. 271-291.

Research output: Journal PublicationsJournal Article (refereed)Researchpeer-review

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KW - Growth

KW - Heterogeneity of human capital

KW - Quality

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JF - Journal of Economic Behavior and Organization

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