Variety, Competition, and Population in Economic Growth: Theory and Empirics

Alberto Bucci, Lorenzo Carbonari and Giovanni Trovato ()

Departmental Working Papers from Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano

Abstract: By considering the average density of sectors in a country’s product space, measured by the Lafay’s net export flows-based specialization index, as an indicator of the degree of complexity of the same country’s production structure (Hausmann and Klinger [29]), this is the first paper that provides aggregate macroeconomic evidence on how, in the long-run, a diverse degree of production-complexity may affect in a differential way not only economic growth, but also the relation between economic growth, population growth and the monopolistic (intermediate) markup. On average, for the countries included in the sample, we find that, following an increase in the number of horizontally-differentiated (intermediate) inputs entering the aggregate production function, the specialization effect is greater than the corresponding complexity effect. In this case, the impact of population growth on economic growth is definitely negative, whereas the influence of the monopolistic markup on the same variable is negative.

Keywords: Economic growth; Population growth; Variety-expansion; Specialization; Complexity; Product market competition (search for similar items in EconPapers)
JEL-codes: J1 O3 O4 (search for similar items in EconPapers)
Date: 2017-03-20
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Journal Article: VARIETY, COMPETITION, AND POPULATION IN ECONOMIC GROWTH: THEORY AND EMPIRICS (2021)
Working Paper: Variety, Competition, and Population in Economic Growth: Theory and Empirics (2019)
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