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International Trade and Growth: An Overview using the New Growth Theory
Author(s) -
Roe Terry,
Mohtadi Hamid
Publication year - 2001
Publication title -
applied economic perspectives and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.4
H-Index - 49
eISSN - 2040-5804
pISSN - 2040-5790
DOI - 10.1111/1467-9353.00070
Subject(s) - growth theory , economics , international trade , trade theory , regional science , international economics , economic geography , trade barrier , neoclassical economics , geography
An overview of the new growth theory is provided from both an analytical and empirical perspective. Following a historical outline and a brief analytical sketch of the R&D‐based models, the results from fitting two structural models to data are presented. Results show the relative impacts on growth from trade and R&D‐based policies including technological spillovers from trade. The mechanism of intersectoral adjustments to the long‐run growth path is also discussed. Insights provided by the theory are related to agriculture from the view of agriculture in the context of the broader economy within which it must compete for resources, and in terms of growth in agricultural factor productivity as evidenced by the recent growth in genetic engineering.