Economic integration affects economic development through two main channels: growth and localization of the economic activities. The theories of endogenous growth and economic geography enable us to understand these mechanisms. We study in this paper their similarities and specificities before...

This paper studies whether intra-developing country price competition has significant effects on the short-run growth rates of developing countries that are specialized in manufactured exports. Regression estimates using the generalized method of moments (GMM) applied to annual panel data for 17...

This paper extends the 'expanding-varieties' growth model in a two-countries-two-goods setup, and describes the dynamics of growth rates and terms of trade when the industry-based economy is the innovation leader, while the tourism-based economy is the follower (i.e. increases the number of...

Commodity terms of trade (CTOT) volatility is positively associated with sovereign credit spreads, leading to a higher cost of capital for producers in commodity-dependent countries. In this paper, we examine how volatile CTOT influences industries’ growth performance based on sector-level...

In its process of growth and its attempt to catch up with the North, the South faces a terms of trade decline in a product cycle scenario. If the South is dependent on imports of northern machines, its growth rate would be adjusted to the growth rate of the North and the terms of trade would...

We show that even in the absence of diminishing returns in production and technological spillovers, international trade leads to a stable world income distribution. This is because specialization and trade introduce de facto diminishing returns: Countries that accumulate capital faster than...

This paper revisits the role of terms of trade using a small open economy (SOE) model in which imports are inputs in production, output markets are imperfectly competitive and firms are connected in an input-output network. Otherwise, the model nests the standard SOE model commonly used in...

In this paper we discuss the relationship between economic growth and natural resources at a global level, taking into account geography. With this aim, our model integrates elements of the theories of endogenous growth, natural resources and new economic geography. We find that an increase in...