scholarly journals A Multi-Country Trade and Tourism with Endogenous Capital and Knowledge

2017 ◽  
Vol 8 (1) ◽  
pp. 71-91 ◽  
Author(s):  
Wei-Bin Zhang
Keyword(s):  
Economic Growth ◽  
International Trade ◽  
Structural Change ◽  
Growth Model ◽  
Global Economy ◽  
Dynamic Interaction ◽  
Learning By Doing ◽  
Utilization Efficiency ◽  
Knowledge Accumulation ◽  
Tourist Flows

AbstractBackground: The study models a dynamic interaction among economic growth, structural change, knowledge accumulation, international trade and tourist flows. Objective: The purpose of this study is to introduce endogenous knowledge into a multi-country growth model with trade and tourism proposed by Zhang. The study models a dynamic interaction among economic growth, structural change, knowledge accumulation, international trade and tourist flows. Methods/Approach: The model is based on Arrow’s learning by doing, the Solow one-sector growth model, the Oniki-Uzawa neoclassical trade model, and the Uzawa two-sector growth model. We first build the multi-country neoclassical growth model of endogenous knowledge with international tourism. Then we show that we can follow the motion of the J - country world economy with J + 1 differential equations. Results: We simulate the motion of the three-country global economy. We carry out a comparative dynamic analysis by simulation with regard to the knowledge utilization efficiency, the efficiency of learning by doing, the propensity to save, the propensity to tour other countries, and the population. Conclusions: The global economy has a unique equilibrium.

scholarly journals MODEL PERTUMBUHAN EKONOMI DUA DAERAH DAN SIMULASI EFEK PERUBAHAN PARAMETERNY

2008 ◽  
Vol 7 (1) ◽  
pp. 47
Author(s):  
N. T. TAUFIK ◽  
E. H. NUGRAHANI ◽  
R. BUDIARTI
Keyword(s):  
Economic Growth ◽  
Economic System ◽  
Growth Model ◽  
Regional Growth ◽  
Learning By Doing ◽  
Trade Patterns ◽  
Knowledge Accumulation ◽  
Economic Growth Model ◽  
Modern Economic Growth ◽  
Modern Economic

The traditional growth theory usually considers only the accumulation of conventional inputs of labor and capital as the primary variables responsible for the growth. It has been proven to be insufficient for explaining the complexity of modern economic growth. This thesis aims to study a two-region economic growth model proposed by Zhang (2005). This model explains the dynamics of economic system based on capital and knowledge accumulation. It also considers relationships between regional growth and regional trade patterns. Each region's production is similar to the standard one-sector growth model. Knowledge accumulation is assumed to be accomplished through learning by doing. Unfortunately, in obtaining the equilibrium solution of the model Zhang made some mistakes. Therefore, this thesis offers some corrections. The analysis done in this thesis includes obtaining equilibrium of the economic system and its feasibility conditions. Some results of simulation study show that knowledge improvement is more effective to increase equilibrium value of economic growth compared to improvement in investment or amenity level.

scholarly journals On the implications of tourism specialization and structural change in tourism destinations

2018 ◽  
Vol 24 (8) ◽  
pp. 945-962 ◽  
Author(s):  
Simone Marsiglio
Keyword(s):  
Economic Growth ◽  
Structural Change ◽  
Growth Model ◽  
Economic Growth Model ◽  
Theoretical Support ◽  
Tourist Flows ◽  
Endogenous Growth Model ◽  
Balanced Growth Path ◽  
Tourism Destinations ◽  
The Relationship

We explore the relationship between tourism specialization and structural change in an endogenous growth model, analyzing its implications for both economic growth and tourist flows. We consider a two-sector economic growth model where the development of tourism activities generates a production externality and a structural change, which modifies the resources-use intensity, ultimately affecting tourist flows. We characterize the balanced growth path equilibrium and analyze under which conditions structural change may generate fast economic growth, providing a theoretical support for the empirical evidence on tourism countries. We also show that structural change may alternatively lead to stages of rejuvenation, stagnation, or decline consistently with what advanced by the tourism area life cycle hypothesis. By combining these different results, we also show that an eventual phase of decline generated by structural change does not necessarily have to be interpreted as a poor economic outcome since there might exist a bell-shaped relationship between residents’ income and number of visitors.

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.

FDI and Trade in Services Towards Sustainable Economic Growth

2020 ◽  
pp. 369-381
Author(s):  
Madhabendra Sinha ◽  
Partha Pratim Sengupta
Keyword(s):  
Economic Growth ◽  
International Trade ◽  
Global Economy ◽  
Service Sector ◽  
Substantial Improvement ◽  
Least Square ◽  
Seasonal Effects ◽  
Current Phase ◽  
Trade In Services ◽  
Sustainable Economic Growth

The paper empirically investigates the inter-linkage between FDI inflow and international trade in service sector in India. Service sector emerges as the fastest growing sector worldwide during current phase of globalization, contributing more than 60 percent of output and almost 35 percent of trade in global economy. The sector also accounted for 63 percent of global stock of FDI. With hosting a large amount of FDI inflow, Indian service sector is also identified globally due to its substantial improvement in growth and export in international market. So there needs a study to explore the theoretically established causal relationship between FDI inflow and international trade in services towards sustainable and service led economic growth in India. The authors collect monthly data from DIPP, Government of India and RBI over a globally witnessed emerging period from January 2009 to June 2016 and apply ADF and PP unit root tests followed by least square estimation after testing the seasonal effects. Their findings imply unidirectional causality between FDI inflow and export Indian services.

Trade Liberalization, Structural Change, and Economic Growth

2021 ◽  
pp. 407-441
Author(s):  
Michael Landesmann ◽  
Neil Foster-McGregor
Keyword(s):  
Economic Growth ◽  
Structural Change ◽  
Trade Liberalization ◽  
Productivity Growth ◽  
Global Economy ◽  
Adam Smith ◽  
Trade Theory ◽  
New Trade Theory ◽  
The Impact ◽  
The Relationship

Trade and the integration of countries into the global economy is one of the main forces shaping the structural composition of economies, an effect which in turn is expected to impact upon productivity and growth. Structural change can be restrained or reinforced by international trade. This chapter reviews the theory on the relationship between trade and trade liberalization and both structural change and growth, from the contributions of Adam Smith to the more recent new new trade theory beginning with the work of Melitz. The chapter further discusses the existing empirical evidence on the relationship between trade and structural change, before concluding by presenting evidence on the impact of trade liberalization on productivity growth for a broad sample of countries, further decomposing the effect into an effect due to structural change and an effect due to within sector productivity developments.

scholarly journals A multi-sectoral version of the Post-Keynesian growth model

2015 ◽  
Vol 45 (1) ◽  
pp. 127-152 ◽  
Author(s):  
Ricardo Azevedo Araujo ◽  
Joanílio Rodolpho Teixeira
Keyword(s):  
Economic Growth ◽  
Structural Change ◽  
Growth Model ◽  
Vertical Integration ◽  
Technological Progress ◽  
Natural Rate ◽  
Productivity Increase ◽  
Rate Of Profit ◽  
And Diffusion ◽  
Over Time

Abstract With this inquiry, we seek to develop a disaggregated version of the post-Keynesian approach to economic growth, by showing that indeed it can be treated as a particular case of the Pasinettian model of structural change and economic expansion. By relying upon vertical integration it becomes possible to carry out the analysis initiated by Kaldor (1956) and Robinson (1956, 1962), and followed by Dutt (1984), Rowthorn (1982) and later Bhaduri and Marglin (1990) in a multi-sectoral model in which demand and productivity increase at different paces in each sector. By adopting this approach it is possible to show that the structural economic dynamics is conditioned not only to patterns of evolving demand and diffusion of technological progress but also to the distributive features of the economy, which can give rise to different regimes of economic growth. Besides, we find it possible to determine the natural rate of profit that makes the mark-up rate to be constant over time.

Interoperability of Knowledge Accumulation and Engineering Manpower Outsourcing in Enterprises

2013 ◽  
Vol 12 (01) ◽  
pp. 1350002 ◽  
Author(s):  
Wen-Hsiang Lai
Keyword(s):  
Economic Growth ◽  
Mathematical Model ◽  
Cost Function ◽  
Economic System ◽  
Global Economy ◽  
Driving Forces ◽  
Main Axis ◽  
Translog Cost Function ◽  
Knowledge Accumulation ◽  
Analysis Study

In recent years, the global economy has moved away from considering capital as the main axis of the economic system and has gradually come to consider knowledge accumulation (KA) and innovation as the main driving forces of economic growth and increased productivity. Because at the same time companies chose to embrace skilled engineering manpower outsourcing (EMO), the global economy now confronts the issues of how to maintain an accumulation of knowledge within the organisation and how to manage outsourcing and external knowledge to achieve balance and maximise values. This paper reports on a research and analysis study of Taiwan's optical industry using a mathematical model of translog cost function that accomplishes EMO and KA and applying this mathematical model to the optical companies in Taiwan. This paper finds that KA and EMO influence each other; when EMO increases, the KA in the company decreases in response, and vice versa.

Agricultural Trade and Structural Change: Evidence from Paraguay

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Cesar Blanco
Keyword(s):  
International Trade ◽  
Structural Change ◽  
Growth Model ◽  
Agricultural Trade ◽  
Significant Rise ◽  
Agricultural Exports ◽  
Foreign Demand ◽  
Long Run ◽  
Sectoral Composition

Abstract We study how international trade affects structural change in an agricultural exporting country. For this purpose, we calibrate a three-sector growth model to quantify the role of international trade in explaining structural change patterns observed in Paraguay. This country experienced a significant rise in net agricultural exports as a percentage of aggregate output during the period 1962–2012. We find the following results. First, international trade is crucial to explain the sectoral composition of employment in this country. The model including trade explains 84.2% of observed changes in employment shares during this period, while the model without trade can only account for 35.6% of observed changes. Second, employment in agriculture remains large in order to satisfy foreign demand. Third, employment shifts directly from agriculture into services in the long run, bypassing manufacturing. These patterns can only be explained by the rise in net agricultural exports.

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