The impacts of globalization in a neoclassical growth model

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Date: Aug. 2009
Publisher: Springer
Document Type: Article
Length: 405 words
Lexile Measure: 1300L

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Our paper attempts to establish, based on the neoclassical growth theory, the relationship between globalization and economic growth. The endogenous growth models consider investments in research and development (R&D), a key part of so-called technical progress, as the motor of growth. Technical progress is an endogenous element of the economic system if it is due to research, education, or learning.

Economic prosperity is associated mainly with technical progress which allows for faster productivity growth and, therefore, higher wages and profits. Economic integration and globalization through trade and international investment enhance business interest in R&D and encourage governments to increase spending on...

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Gale Document Number: GALE|A208178640