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Author Zagler, Martin
Source CiteSeerX
Content type Text
File Format PDF
Subject Domain (in DDC) Computer science, information & general works ♦ Data processing & computer science
Subject Keyword Economic Growth ♦ Eastern Europe ♦ Quality Improvement ♦ Development Sector ♦ Market Inefficiency ♦ Standard Endogenous Growth Model ♦ Rational Decision ♦ Monopolistic Competition ♦ Beneficiary Effect ♦ Endogenous Growth ♦ Little Chance ♦ Limited Protectionist Policy Experiment ♦ Differentiated Product ♦ Protectionist Policy ♦ Future Rent ♦ Human Capital
Abstract This paper investigates beneficiary effects of limited protectionist policy experiments on economic growth and welfare. The setup of the model is a standard endogenous growth model based on quality improvements in a given spectrum of differentiated products. Both individuals and firms are rational optimizing agents, yet the monopolistic competition gives rise to a market inefficiency. Emphasis is put on the concept of productivity in the research and development sector. In accordance with the literature on endogenous growth, research is undertaken as a result of a rational decision in anticipation of future rents. The paper stresses the fact that the knowledge that is available within an economy is important for productivity in R & D. Therefore, once a country has been falling behind in the R & D race, it has little chance to catch up, unless either human capital and labor can move freely, or, of course, a protectionist policy is run to foster growth and catch up with the leading nations. I.
Educational Role Student ♦ Teacher
Age Range above 22 year
Educational Use Research
Education Level UG and PG ♦ Career/Technical Study
Learning Resource Type Article