search query: @indexterm macroeconomic models / total: 204
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| Author: | Perera-Tallo, F. |
| Title: | Growth due to globalization |
| Journal: | International Economic Review
2003 : MAY, VOL. 44:2, p. 651-676 |
| Index terms: | Economic growth Transport costs Open economy Macroeconomic models Globalization |
| Language: | eng |
| Abstract: | The article presents a growth model including geographical space and transportation costs in which the geographical area where firms sell their product is endogenous. The model explains why economies become increasingly more open and why the degree of openness is not robustly correlated with growth. In contrast to other growth models, investment in transport infrastructure plays an important role and the size of the country does not affect growth. |
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