Product-Variety, Population, Competition, and Growth

Alberto Bucci

DEGIT Conference Papers from DEGIT, Dynamics, Economic Growth, and International Trade

Abstract: This paper analyzes how population and product market competition (PMC) interact with each other in affecting productivity growth. We find that only a fully endogenous growth model with purposeful investment in human capital, an input in the production of intermediate goods, can simultaneously predict (as suggested by the available theoretical/empirical literature) that the relationships between population and economic growth rates and between PMC and economic growth are non-monotonic. The trade-off between specialization-gains and complexity-costs arising from an expansion of product-variety is crucial in determining the sign of these correlations, and the possible complementarity between two key variables in economic growth.

Keywords: Endogenous and semi-endogenous growth; Population (size and growth); Human capital; Horizontal innovation; Scale effects; Monopolistic competition (search for similar items in EconPapers)
JEL-codes: J10 J24 O31 O33 O41 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2011-09
New Economics Papers: this item is included in nep-com and nep-fdg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:deg:conpap:c016_006

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