Abstract
This paper examines the patterns of economic integration and endogenous growth in a two-country overlapping-generations world, in which the formation of children's human capital is financed by parents. It explores the influence of cross-border external effects in human capital on growth. Interestingly, world integration can enhance (reduce) long-run growth in both countries if cross-border external effects in human capital are sufficiently strong (weak).
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Michel, P., Vidal, JP. Economic integration and growth under intergenerational financing of human-capital formation. Journal of Economics Zeitschrift für Nationalökonomie 72, 275–294 (2000). https://doi.org/10.1007/BF01231268
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DOI: https://doi.org/10.1007/BF01231268