Resources, innovation and growth in the global economy

Peretto, Pietro F. and Valente, Simone (2011) Resources, innovation and growth in the global economy. Journal of Monetary Economics, 58 (4). pp. 387-399. ISSN 0304-3932

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Abstract

The relative performance of open economies is analyzed in an endogenous growth model with asymmetric trade. A resource-rich country trades resource-based intermediates for final goods produced by a resource-poor economy. The effects of an increase in the resource endowment depend on the elasticity of substitution between resources and labor in intermediates' production. Under substitution (complementarity), the resource boom generates higher (lower) income, lower (higher) employment in the primary sector and faster (slower) growth in the resource-rich economy. In the resource-poor economy, the shock induces a higher (lower) relative wage and positive (negative) growth effects that are exclusively due to trade.

Item Type:	Article
Faculty \ School:	Faculty of Social Sciences > School of Economics
UEA Research Groups:	Faculty of Social Sciences > Research Groups > Environment, Resources and Conflict Faculty of Social Sciences > Research Groups > Economic Theory
Depositing User:	Pure Connector
Date Deposited:	24 Sep 2016 00:57
Last Modified:	07 Mar 2024 02:04
URI:	https://ueaeprints.uea.ac.uk/id/eprint/60331
DOI:	10.1016/j.jmoneco.2011.07.001

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