[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/bla/reviec/v13y2005i1p1-19.html
   My bibliography  Save this article

Economic Takeoffs in a Dynamic Process of Globalization

Author

Listed:
  • Eric W. Bond
  • Ronald W. Jones
  • Ping Wang
Abstract
The paper develops a dynamic general‐equilibrium framework to illustrate that trade liberalization may speed up the process of globalization and industrialization by enabling a small open economy to reallocate production factors to modern export sectors where increasing returns to experience are present. The authors emphasize the role of knowledge in service activities related to the export of modern sector goods, which has the form of a public good that can be utilized in exporting of other modern sector goods. As a consequence of this knowledge accumulation, the economy begins to take off and exhibits more rapid rates of wage and output growth. The accumulation of knowledge also shifts comparative advantage in the modern sector to more service‐intensive goods, thus leading to a natural evolution of comparative advantage. These results lend theoretical support to the different development experiences in the 1960s between East Asia and Latin America.

Suggested Citation

  • Eric W. Bond & Ronald W. Jones & Ping Wang, 2005. "Economic Takeoffs in a Dynamic Process of Globalization," Review of International Economics, Wiley Blackwell, vol. 13(1), pages 1-19, February.
    • Handle: RePEc:bla:reviec:v:13:y:2005:i:1:p:1-19
    DOI: 10.1111/j.1467-9396.2005.00489.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1467-9396.2005.00489.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1467-9396.2005.00489.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Andrew B. Bernard & J. Bradford Jensen, 1999. "Exporting and Productivity," NBER Working Papers 7135, National Bureau of Economic Research, Inc.
    2. James E. Rauch, 1996. "Trade and Search: Social Capital, Sogo Shosha, and Spillovers," NBER Working Papers 5618, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yunfang Hu & Takuma Kunieda & Kazuo Nishimura & Ping Wang, 2023. "Flying or trapped?," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 75(2), pages 341-388, February.
    2. Hexian Wang & Wei Liu & Mengyuan Zhu & Qing Wang, 2018. "Embrace or Not? An Empirical Study of the Impact of Globalization on the Country’s Sustainability in the Case of NAFTA," Sustainability, MDPI, vol. 10(10), pages 1-16, September.
    3. Wang, Ping & Xie, Danyang, 2004. "Activation of a modern industry," Journal of Development Economics, Elsevier, vol. 74(2), pages 393-410, August.
    4. Emilie Kinfack & Lumengo Bonga‐Bonga, 2023. "The growth effect of trade openness on African countries: Evidence from using an instrumental variable panel smooth transition model," Bulletin of Economic Research, Wiley Blackwell, vol. 75(2), pages 366-379, April.
    5. Trindade, Vitor, 2005. "The big push, industrialization and international trade: The role of exports," Journal of Development Economics, Elsevier, vol. 78(1), pages 22-48, October.
    6. Shahbaz, Muhammad, 2012. "Does trade openness affect long run growth? Cointegration, causality and forecast error variance decomposition tests for Pakistan," Economic Modelling, Elsevier, vol. 29(6), pages 2325-2339.
    7. Marina V. Vasiljeva & Vadim V. Ponkratov & Larisa A. Vatutina & Maria V. Volkova & Marina I. Ivleva & Elena V. Romanenko & Nikolay V. Kuznetsov & Nadezhda N. Semenova & Elena F. Kireeva & Dmitrii K. G, 2022. "Crude Oil Market Functioning and Sustainable Development Goals: Case of OPEC++-Participating Countries," Sustainability, MDPI, vol. 14(8), pages 1-23, April.
    8. Jalil Khodaparast Shirazi & Vahid Mohamad Taghvaee & Mohamad Nasiri & Abbas Assari Arani, 2020. "Sustainable development and openness in oil-exporting countries: green growth and brown growth," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-19, December.
    9. Dong-Hyeon Kim & Shu-Chin Lin, 2009. "Trade and Growth at Different Stages of Economic Development," Journal of Development Studies, Taylor & Francis Journals, vol. 45(8), pages 1211-1224.
    10. Imen Mohamed Sghaier, 2020. "Does Financial Development Affect the Economic Growth Gains from Trade Openness?," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 4, pages 666-682, December.
    11. Muhammad Tariq Majeed, 2020. "Do digital governments foster economic growth in the developing world? An empirical analysis," Netnomics, Springer, vol. 21(1), pages 1-16, December.
    12. Eric W. Bond & Yan Ma, 2013. "Learning by Doing and Fragmentation," Pacific Economic Review, Wiley Blackwell, vol. 18(5), pages 603-627, December.
    13. Ming-Jen Chang & Ping Wang & Danyang Xie, 2016. "The Dynamic Process of Economic Takeoff and Industrial Transformation," Frontiers of Economics in China-Selected Publications from Chinese Universities, Higher Education Press, vol. 11(1), pages 60-87, March.
    14. Imen Mohamed Sghaier, 2023. "Trade openness, financial development and economic growth in North African countries," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(2), pages 1729-1740, April.
    15. My-Linh Thi Nguyen & Toan Ngoc Bui, 2021. "Trade Openness and Economic Growth: A Study on Asean-6," Economies, MDPI, vol. 9(3), pages 1-16, August.
    16. Nicholas Sim, 2005. "Service liberalization, endogenous industrial composition and modernization," Applied Economics Letters, Taylor & Francis Journals, vol. 12(3), pages 161-163.
    17. Rasoulinezhad, Ehsan, 2020. "Energy Trade and Economic Integration between the Commonwealth Independent States and China," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 35(1), pages 172-190.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Salman Haider & Aadil Ahmad Ganaie & Bandi Kamaiah, 2019. "Total Factor Productivity and Openness in Indian Economy: 1970–2011," Foreign Trade Review, , vol. 54(1), pages 46-57, February.
    2. Andrew B. Bernard & Jonathan Eaton & J. Bradford Jensen & Samuel Kortum, 2003. "Plants and Productivity in International Trade," American Economic Review, American Economic Association, vol. 93(4), pages 1268-1290, September.
    3. Sébastien Jean, 2002. "International Trade and Firms' Heterogeneity under Monopolistic Competition," Open Economies Review, Springer, vol. 13(3), pages 291-311, July.
    4. Andersen, Torben M., 2005. "Product market integration, wage dispersion and unemployment," Labour Economics, Elsevier, vol. 12(3), pages 379-406, June.
    5. Jonathan Haskel & Holger Wolf, 2001. "The Law of One Price—A Case Study," Scandinavian Journal of Economics, Wiley Blackwell, vol. 103(4), pages 545-558, December.
    6. Megha Mukim, 2011. "Trade integration, economic geography and productivity: The Indo-Sri Lanka FTA," ERSA conference papers ersa10p176, European Regional Science Association.
    7. Tineke Fokkema & Eralba Cela & Elena Ambrosetti, 2013. "Giving from the Heart or from the Ego? Motives behind Remittances of the Second Generation in Europe," International Migration Review, Wiley Blackwell, vol. 47(3), pages 539-572, September.
    8. Naudé, Wim & Gries, Thomas & Bilkic, Natasa, 2015. "Playing the lottery or dressing up? A model of firm-level heterogeneity and the decision to export," The Quarterly Review of Economics and Finance, Elsevier, vol. 58(C), pages 1-17.
    9. Christian Volpe Martincus & Jerónimo Carballo, 2010. "Is Export Promotion Effective in Developing Countries? Firm-Level Evidence on the Intensive and Extensive Margins of Exports," IDB Publications (Working Papers) 36763, Inter-American Development Bank.
    10. Rauch, James E., 1999. "Networks versus markets in international trade," Journal of International Economics, Elsevier, vol. 48(1), pages 7-35, June.
    11. Krolikowski, Pawel M. & McCallum, Andrew H., 2021. "Goods-market frictions and international trade," Journal of International Economics, Elsevier, vol. 129(C).
    12. Anders Akerman & Rikard Forslid, 2009. "Firm Heterogeneity and Country Size Dependent Market Entry Costs," Global COE Hi-Stat Discussion Paper Series gd09-056, Institute of Economic Research, Hitotsubashi University.
    13. repec:lic:licosd:15905 is not listed on IDEAS
    14. Fugazza, Marco & Robert-Nicoud, Frédéric, 2006. "Can South-South trade Liberalisation Stimulate North-South Trade ?," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 21, pages 234-253.
    15. Christian Volpe Martincus & Jeronimo Carballo & Andres Gallo, 2011. "The impact of export promotion institutions on trade: is it the intensive or the extensive margin?," Applied Economics Letters, Taylor & Francis Journals, vol. 18(2), pages 127-132.
    16. Joachim Wagner, 2016. "Exports and Productivity: A Survey of the Evidence from Firm Level Data," World Scientific Book Chapters, in: Microeconometrics of International Trade, chapter 1, pages 3-41, World Scientific Publishing Co. Pte. Ltd..
    17. Qasim, Ahmed Waqar & Itaya, Jun-ichi, 2019. "Trade Policy with Intermediate Inputs Trade," Discussion paper series. A 342, Graduate School of Economics and Business Administration, Hokkaido University.
    18. Natalia Nehrebecka, 2011. "Wykorzystanie łańcuchów Markowa do prognozowania zmian w strukturze polskich przedsiębiorstw," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 10, pages 59-98.
    19. Volpe Martincus, Christian & Carballo, Jerónimo, 2010. "Beyond the average effects: The distributional impacts of export promotion programs in developing countries," Journal of Development Economics, Elsevier, vol. 92(2), pages 201-214, July.
    20. Hoekman & Bernard & Winters, L. Alan, 2005. "Trade and employment : stylized facts and research findings," Policy Research Working Paper Series 3676, The World Bank.
    21. Christopher Johann Kurz, 2006. "Outstanding Outsourcers: A Firm- and Plant-Level Analysis of Production Sharing," Working Papers 06-02, Center for Economic Studies, U.S. Census Bureau.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:reviec:v:13:y:2005:i:1:p:1-19. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0965-7576 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.