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Citation Context ...nology gap is constant. These dynamics are consistent with the common understandingsthat differences in income and productivity levels are permanent, while differences in growthsrates are transitory (=-=Acemoglu and Ventura, 2002-=-). The model reproduction of South Africansgrowth during 1960-2005 (explained in the next section) is of transitional character, and thussendogenous.s4. Reproducing the growth path for South AfricasTh... |
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Citation Context ...runstechnological divergence is a possible outcome. This is consistent with empirical evidencesshowing convergence among open economies, while high trade barriers may generate asdevelopment trap (see =-=Sachs and Warner, 1995-=-).sFigure 1 about here.sThe productivity dynamics, as well as the transitional and long-run effects of increased tradesshare, are illustrated in Figure 1. The horizontal axis shows the relative positi... |
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Citation Context ...Thailand.s7 3.sThe Ramsey growth modelsCalibrated general equilibrium models have been used in the Parente and Prescott (1994)stradition emphasizing barriers to capital accumulation (see for instance =-=Chari et al., 1996-=-;sRestuccia, 2004). Technological change is exogenous as in the standard Solow model.sCompared to this literature we focus on open economy mechanisms and the interactionsbetween endogenous productivit... |
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Citation Context ...itative effects of trade barriers depend on keysparameters.s3 The assumption of 0.7% labor growth is consistent with data on average annual employment growth in SouthsAfrica during 1971-2005 (Quantec =-=Research, 2007-=-).s4 Detailed documentation of the calibration and the 1998 Social Accounting Matrix is given in a separatesappendix available from the authors.s5 The calculation is based on trade shares in the range... |
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