Evidence on Growth, Increasing Returns, and the Extent of the Market
检验市场范围对经济增长的影响，发现封闭经济中初始收入与后续增长的相关性更强，支持市场范围和总需求对增长的重要性。
If economic growth relies upon the extent-of-the-market, then openness will decrease the connection between initial income and later growth. Alternatively, learning-by-doing models suggest that wealth will be more positively correlated with growth in open economies, because trade causes advanced economies to specialize in products with more opportunities for learning. We examine twentieth century less developed countries and nineteenth century U. S. states. In both data sets, there is a much stronger correlation between growth and initial wealth among closed economies. These findings support the importance of the extent-of-the-market, and aggregate demand in fostering growth.