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• W2149093019 abstract "Reliance on a Dixit–Stiglitz production function leads the growth literature naïvely to associate economic scale with the size of a country's population. I develop an alternative approach in which market size is endogenous, reflecting a trade-off between the gains to exploiting non-rival skills and market transaction costs. Transaction costs reflect a country's institutional framework. The model supports scale effects in transitional growth rates and steady state income levels, suggesting scale effects may be important for developing countries. In this framework effective market size depends on a country's institutions. It is independent of population size and other macroeconomic variables." @default.
• W2149093019 created "2016-06-24" @default.
• W2149093019 creator A5027442164 @default.
• W2149093019 date "2008-05-01" @default.
• W2149093019 modified "2023-09-26" @default.
• W2149093019 title "Scale effects in growth: A role for institutions" @default.
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• W2149093019 doi "https://doi.org/10.1016/j.jebo.2006.05.007" @default.
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