Export Promotion, Learning by Doing and Growth

Posted: 18 Nov 1996

See all articles by Steve Ambler

Steve Ambler

University of Quebec at Montreal (UQAM) - Centre de recherche sur l'emploi et les fluctuations économiques (CREFÉ)

Emanuela Cardia

University of Montreal - Center for Research and Development in Economics

Jeannine M. Farazli

University of Calgary

Date Written: July 1996

Abstract

This paper explores the quantitative link between export-promoting commercial policies and economic growth. We build and calibrate a dynamic general equilibrium model of a small developing economy. The economy's equilibrium is suboptimal due to monopolistic competition in the manufacturing sector and a human capital accumulation externality. Second-best commercial policy that promotes exports in the sector with the externality can lead to an increase in both welfare and growth rates. We show that export-promoting policies can lead to substantial quantitative increases in steady-state growth for a wide range of parameter values.

JEL Classification: E32, E62

Suggested Citation

Ambler, Steve and Cardia, Emanuela and Farazli, Jeannine M., Export Promotion, Learning by Doing and Growth (July 1996). Available at SSRN: https://ssrn.com/abstract=3512

Steve Ambler (Contact Author)

University of Quebec at Montreal (UQAM) - Centre de recherche sur l'emploi et les fluctuations économiques (CREFÉ) ( email )

P.O. Box 8888, Downtown Station
Montreal, Quebec H3C 3P8
Canada
514-987-3000 ext. 8372 (Phone)
514-987-8494 (Fax)

Emanuela Cardia

University of Montreal - Center for Research and Development in Economics ( email )

Montreal, Quebec H3T 1B9
Canada

Jeannine M. Farazli

University of Calgary ( email )

2500 University Drive, NW
Calgary, Alberta T2N 1N4
Canada
403-220-5860 (Phone)
403-282-5262 (Fax)

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