An inverted-U relationship between product market competition and Growth in an extended romerian model : A comment

Bianco, Dominique (2007): An inverted-U relationship between product market competition and Growth in an extended romerian model : A comment. Published in: Rivista di Politica Economica No. September-October (2007): pp. 177-190.

Abstract

This paper shows that the results of Bucci (2005) depend critically on the assumption that there are no difference between the intermediate goods share in final output, the returns of specialization and the degree of market power of monopolistic competitors. In this paper, we disentangle the market power parameter from the intermediate goods share in final output and the returns to specialization. The main result of this paper is the death of the inverted-U shape relationship between competition and growth. Indeed, we find a decreasing relationship between competition and growth which is due to the composition of two negative effects on growth : resource allocation and Schumpeterian effects.

• Item Type: MPRA Paper
• Institution: University of Nice-Sophia-Antipolis, GREDEG(CNRS)
• Language: English
• Keywords: Endogenous growth; Horizontal differentiation; Technological change; Imperfect competition
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O31 - Innovation and Invention: Processes and Incentives; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O41 - One, Two, and Multisector Growth Models

References

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