Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/171476 
Year of Publication: 
2004
Series/Report no.: 
Economics Working Paper Series No. 04/32
Publisher: 
ETH Zurich, CER-ETH - Center of Economic Research, Zurich
Abstract: 
Integration a.ects economic growth mainly through two different channels : The scale-effect channel and the factor-reallocation channel. In order to investigate both channels within a unifying framework, we employ a simple descriptive growth model. The scale-effect channel increases either the long-run growth rate or the level of the balanced growth path. The factor-reallocation channel is ambiguous. It is shown under which conditions this mechanism induces either a rise or a fall in the long-run growth rate. In addition, a number of policy conclusions are drawn.
Subjects: 
trade
economic integration
economic growth
scale effects
factor reallocation
JEL: 
F1
O4
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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