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M. B. Devereux, A. C. Head and B. L. Lapham, “Government Spending and Welfare with Returns to Specialization,” Scandinavian Journal of Economics, Vol. 102, No. 4, 2000, pp. 547-561. doi:10.1111/1467-9442.00214

has been cited by the following article:

• TITLE: Product Market Competition and Economic Growth: The Role of Increasing Returns to Production Specialization

  AUTHORS: Juin-jen Chang, Hsiao-wen Hung

  KEYWORDS: Monopoly Power; Increasing Returns to Specialization; Economic Growth

  JOURNAL NAME: Theoretical Economics Letters, Vol.2 No.3, August 3, 2012

  ABSTRACT: In a simple one-sector endogenous growth model of imperfect competition, we show that the competitiveness-growth relationship can be mixed, crucially depending on the degree of the increasing returns to specialization. This ambiguity not only reconciles the theoretical prediction with the recent empirical evidence, but also provides a plausible explanation for the diversity in the competitiveness-growth relationship across countries.