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- W2093403274 abstract "This paper extends previous analyses of Romer (1990), Rivera-Batiz and Romer (1991a), and Rivera-Batiz and Xie (1993) by examining the influence of dissimilarities between countries on growth effects of integration. It is shown that different rates of time preference and different productivity parameters of human capital in R&D play an important role in determining output growth, intertemporal consumption structure and human capital allocation. The results point to beneficial effects of integration even for countries that experience a decline in R&D activity as a consequence of the integration process. The results can be applied to the integration within NAFTA since the U.S., Canada, and Mexico represent relatively unequal countries. According to the analysis, even Mexico can benefit from this integration although R&D activities may decline there. Likewise, a very innovative country like the U.S. can benefit from integration with a less innovative partner country." @default.
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- W2093403274 date "1997-03-01" @default.
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- W2093403274 title "Growth effects of integration among unequal countries" @default.
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- W2093403274 doi "https://doi.org/10.1016/s1044-0283(97)90009-0" @default.
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