Title

Quality, trade, and growth

Document Type

Journal article

Source Publication

Journal of Economic Behavior & Organization

Publication Date

10-1-2004

Volume

55

Issue

2

First Page

271

Last Page

291

Keywords

Extent of the market, Growth, Heterogeneity of human capital, Quality

Abstract

This paper analyzes the roles of product quality and increasing returns in international division of labor and economic development. Because the qualities of different intermediate goods are highly complementary in producing the quality of the final good, a poor economy will choose to be in autarky if its average level of human capital is sufficiently low. Thus, the heterogeneity of human capital may hamper the division of labor. Further, by linking quality, trade and growth, this model simultaneously explains the East Asian Miracle and the empirical finding of conditional convergence.

DOI

10.1016/j.jebo.2003.09.011

Print ISSN

01672681

Publisher Statement

Copyright © 2014 Elsevier B.V.

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Full-text Version

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Recommended Citation

Fan, C. S. (2004). Quality, trade, and growth. Journal of Economic Behavior & Organization, 55(2), 271-291. doi: 10.1016/j.jebo.2003.09.011