Intermediate Products and the Two-Sector Growth Model in an Open Economy

1977 ◽  
Vol 53 (1) ◽  
pp. 96-109
Author(s):  
Chun-Yan Kuo
Keyword(s):  
Growth Model ◽  
Open Economy ◽  
Intermediate Products

scholarly journals Education, Income, Wealth Inequality and Business Cycles in a General Equilibrium Growth Model

2020 ◽  
Vol 26 (4) ◽  
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Business Cycles ◽  
General Equilibrium ◽  
Growth Model ◽  
Open Economy ◽  
Wealth Inequality ◽  
Learning By Doing ◽  
Government Subsidy ◽  
Wealth Inequalities

The paper is concerned with the dynamic interactions between physical capital, human capital, income and wealth inequalities between different households with government subsidy to education. It generalizes the endogenous growth model of a small-open economy proposed by Zhang (2016). Zhang’s paper deals with income and wealth inequalities between heterogeneous households with government subsidy to education. The paper makes a contribution to the literature of economic growth with endogenous education by integrating Solow-Uzawa’s neoclassical growth theory, Uzawa-Lucas model, Arrow’s learning by doing, Zhang’s creative leisure, and Walrasian general equilibrium theory. The model treats endogenous capital and human capital accumulation as the main engines of economic growth. This study generalizes Zhang’s model by allowing constant coefficients to be time-dependent. We simulate the generalized model to demonstrate existence of business cycles due to various exogenous periodic shocks.

scholarly journals BUSINESS CYCLES, GROWTH, AND IMPORTED ENERGY IN A SMALL-OPEN GROWTH MODEL

2018 ◽  
Vol 3 (2) ◽  
pp. 7-21 ◽  
Author(s):  
Wei-Bin Zhang
Keyword(s):  
Business Cycles ◽  
Growth Model ◽  
Open Economy ◽  
Small Open Economy ◽  
Economic Growth Model ◽  
Constant Coefficients ◽  
Open Growth ◽  
Two Sectors ◽  
Neoclassical Growth Theory ◽  
Neoclassical Growth

This paper generalizes an economic growth model proposed by Zhang (2017) by allowing all constant coefficients to be time-dependent. This paper shows existence of business cycles in the generalized model due to periodic shocks. Zhang’s original model is developed for a small open economy with imported energy and imported goods. The economy is composed of two sectors and all markets are perfectly competitive. The economy has fixed land and population. Production side is the same as in neoclassical growth theory, while demand side is modelling with Zhang’s utility and concept of disposable income. We generalize and simulate the model. We demonstrate existence of business cycles due to different exogenous periodic shocks.

scholarly journals A chaotic economic growth model and the agricultural share of an output

2005 ◽  
Vol 50 (2) ◽  
pp. 207-216 ◽  
Author(s):  
Vesna Jablanovic
Keyword(s):  
Economic Growth ◽  
Growth Model ◽  
Open Economy ◽  
Agricultural Production ◽  
Small Open Economy ◽  
Total Output ◽  
Economic Growth Model ◽  
Stable Equilibria ◽  
Set Up ◽  
Parameter Values

The agricultural share of a total output generally declines in the process of economic growth. The major reason for this is that consumer demand for food increases only slightly with rising incomes. However, a small, open economy can overcome this constraint to the growth of agricultural production by expanding its net exports. The basic aim of this paper is to set up a chaotic growth model of the gross domestic product that is capable of generating stable equilibria, cycles, or chaos depending on parameter values.

scholarly journals Specific features of the Russian Economic Growth Model

2018 ◽  
Vol 22 (6) ◽  
pp. 6-24
Author(s):  
I. S. Bukina ◽  
P. A. Orekhovsky
Keyword(s):  
Economic Growth ◽  
Interest Rate ◽  
Labor Productivity ◽  
Growth Model ◽  
Open Economy ◽  
Wage Growth ◽  
Statistical Testing ◽  
Commercial Sector ◽  
Study Objective ◽  
Domestic Interest Rate

The article presents the study of the specific features of the Russian economic growth in 1998–2017. The study objective is to substantiate the growth and decline mechanism in business activity in the Russian economy. This mechanism is determined by the gap in the growth rates of wages and labor productivity in the open economy. Four hypotheses have been formulated: 1) significant cause and effect relationship between exchange rate and economic growth in Russia; 2) wage growth outrunning productivity has a depressing effect on the profitability of the commercial sector; 3) significant differences between the Russian economic growth in 1998–2009 and in 2009–2017, determined by the connection between the excess of the domestic interest rate over the world rate and investments; 4) substantial connection between the domestic interest rate and investment in 1998–2009 which disappeared in 2009–2017. The theoretical analysis and the hypotheses have been based on neoclassical synthesis models. Statistical testing of the hypotheses has been carried out by means of statistical and correlation analysis and methods of econometric analysis of time series. A problem related to wage growth outrunning labor productivity has been identified. Probable significant changes in the Russian growth model in 2018–2020 have been forecasted. They will be caused by the infrastructure development and housing construction. The major conclusion of the study is that there will be a positive effect of the ruble depreciation on labor productivity in the medium term. However, it will be over by the end of 2019 and beginning of 2020. Domestic currency strengthening and outrunning wage growth with the slowing labor productivity reduce the profitability of the commercial sector and put brakes on the economic growth.

Book Reviews

2010 ◽  
Vol 48 (4) ◽  
pp. 1041-1043
Keyword(s):  
Economic Growth ◽  
Labor Supply ◽  
Foreign Aid ◽  
Growth Model ◽  
Open Economy ◽  
Capital Accumulation ◽  
Growth Models ◽  
Small Open Economy ◽  
Basic Model ◽  
The University

Kent P. Kimbrough of Duke University reviews “Capital Accumulation and Economic Growth in a Small Open Economy” by Stephen J. Turnovsky,. The EconLit Abstract of the reviewed work begins “Investigates the process of economic growth in a small open economy and considers whether it is sensitive to the economy’s productive structure. Discusses a basic growth model with fixed labor supply; a basic growth model with endogenous labor supply; transitional dynamics and endogenous growth in one-sector models; two-sector growth models; nonscale growth models; a basic model of foreign aid; and foreign aid, capital accumulation, and economic growth--some extensions. Turnovsky is Castor Chair of Economics at the University of Washington. Index.”

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