Paper #849

Title:

A global view of economic growth

Author:

Jaume Ventura

Date:

March 2005

Abstract:

This paper integrates in a unified and tractable framework some of the key insights of the field of international trade and economic growth. It examines a sequence of theoretical models that share a common description of technology and preferences but differ on their assumptions about trade frictions. By comparing the predictions of these models against each other, it is possible to identify a variety of channels through which trade affects the evolution of world income and its geographical distribution. By comparing the predictions of these models against the data, it is also possible to construct coherent explanations of income differences and long-run trends in economic growth.

Keywords:

Economic growth, international trade, globalization

JEL codes:

F10, F15, F40, F43, O11, O41

Area of Research:

Macroeconomics and International Economics

Published in:

Handbook of Economic Growth, vol. 1B, Philippe Aghion and Steven N. Durlauf (eds.), 2005 Elsevier B. V.

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