Premium
La recherche de statut international, commerce, et impulsion de croissance.
Author(s) -
Valente Simone
Publication year - 2009
Publication title -
canadian journal of economics/revue canadienne d'économique
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.773
H-Index - 69
eISSN - 1540-5982
pISSN - 0008-4085
DOI - 10.1111/j.1540-5982.2009.01519.x
Subject(s) - stylized fact , economics , convergence (economics) , endogenous growth theory , developing country , consumption (sociology) , productivity , capital accumulation , growth model , international economics , human capital , international trade , monetary economics , development economics , macroeconomics , economic growth , social science , sociology
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.