Growth Theory and Economic Structure.
New growth theory endogenizes growth but neglects aggregate demand and distributional shifts in output and employment. A model incorporating demand and structural change is introduced to assess the effects of greater integration of the EC. The analysis shows that the new growth model overstates the long-run implications of integration and that identical effects on productivity growth can be achieved by reducing unemployment. It is argued that the benefits of lower unemployment are more certain of achievement than those expected from reduced barriers to trade and resource movement, and that stronger demand is a prerequisite for realization of the latter. Copyright 1994 by The London School of Economics and Political Science.
Year of publication: |
1994
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Authors: | Cornwall, John ; Cornwall, Wendy |
Published in: |
Economica. - London School of Economics (LSE). - Vol. 61.1994, 242, p. 237-51
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Publisher: |
London School of Economics (LSE) |
Saved in:
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