International status seeking, trade, and growth leadership

Valente, Simone (2009) International status seeking, trade, and growth leadership. The Canadian Journal of Economics, 42 (2). pp. 554-589. ISSN 0008-4085

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Abstract

We study a two-country endogenous growth model where the utility of agents in developing countries is affected by consumption gaps with advanced economies. International status seeking tends to revert growth differentials in favour of the developing country. Preferences with endogenous status desire generate convergence in growth rates in the presence of structural gaps and convergence in income levels if productivity differences disappear. This process is driven by declining terms of trade and faster capital accumulation of the status seeker. The model predictions are shown to be consistent with the stylized facts that characterized the growth performance of East Asian economies.

Item Type: Article
Uncontrolled Keywords: o33,f12,d91
Faculty \ School: Faculty of Social Sciences > School of Economics
Related URLs:
Depositing User: Pure Connector
Date Deposited: 24 Sep 2016 01:57
Last Modified: 25 Jul 2018 12:40
URI: https://ueaeprints.uea.ac.uk/id/eprint/60323
DOI: 10.1111/j.1540-5982.2009.01519.x

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