Growth Theory Relation to Globalization

Length: Maximum 5,000 words

1. Neo-classical growth theory.

2. Endogenous growth theory ( I will takes this model as an example below)

 

Using relevant material from lectures and readings, and at least six sources from your own

research, write a critical analysis of each theory in a structured essay that considers 1)

how they relate to globalization, 2) the evidence for/against them, 3) how they can inform

policy, and 4) their limits.

 

Recommended essay format:

Use subsections to organize your analysis. A suggested structure for each of the two theories

is:

Theory 1: Short name of theory

Section 1: Overview of theory

— A complete exposition of the key elements of the theory and making sure to explain how

global integration (financial or trade) fits with the theory. Include diagrams and equations, if

necessary.

Section 2: Supporting evidence

— Cite at least two other papers here for each theory. Recreate tables, graphs etc. from source

material if it is useful.

Section 3: Policy implications

— Describe how does the theory can inform policy-making?

Section 4: Critique and alternative explanations

— Cite at least two other papers here. Add further tables, graphs etc. if necessary.

 

 

 

Theory 2: Endogenous Growth Theory

Section 1:

Overview of Endogenous Growth Theory Describe the meaning of the equations /formula/ graph. There is a category of endogenous

model’s view. Just for intense. If you find a better organize, you can change it.

1. (Murphy, Shleifer and Vishny,1989).

2. Young(1991)

3. Endogenous technological progress Arrow’s Model (explain their views and

why/how they are different. Choose two to explain very detail)

1)Romer(1990)

2)Lucas(1988)

3)Monopoly competition and R&D theory

These articles are our course reading, choose at least one thanks.

1. Romer, P. (1990). Endogenous Technological Change. Journal of Political Economy.

2. Bassanini, A. & Scarpett, S. (2001). The Driving Forces of Economic Growth: Panel Data

Evidence for the OECD Countries. OECD Economic Studies, 2001, 33 (2).

3. Mata, T. and Louca, F. (2009).The Solow Residual as a Black-box. History of Political

Economy (41).

4. Rostow, W. (1960). The Stages of Economic Growth: A Non-Communist Manifesto.

Cambridge University Press. Chapter 2.

5. The Economist. (2006). The growth of growth theory.

http://www.economist.com/node/6943519

6. De-Long, B.J. Growth Accounting.

http://www.j-bradford-delong.net/macro_online/growth_accounting.pdf

 

 

Endogenous Growth Theory Relation to Globalization

For instance: international trade effect the K, A in endogenous model.

Section 2 You can support the evidence either for over view endogenous model or global integration

(financial or trade) fits with the theory.

Use this reference’s data:

http://graduateinstitute.ch/files/live/sites/iheid/files/sites/ctei/shared/CTEI/

Baldwin/Publications/Chapters/Trade%20Theory/Proof_Version_ROIE_546.pdf

and choose one more at least.

Section 3

How the Theory Forms Policy Implications:

Section 4: Critique and Alternative Explanation


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