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Yi Jin and Zhixiong Zeng
 
''Distribution services and economic growth''
( 2006, Vol. 15 No.10 )
 
 
We analyze how the presence of distribution services affects an economy's long-run growth. We show that in an endogenous growth model, increases in the unit distribution requirement lower the economy''s balanced growth rate by reducing the proportion of aggregate employment allocated to the manufacturing sector. This contrasts with the neutrality result in the exogenous growth case.
 
 
Keywords: Distribution services
JEL: O4 - Economic Growth and Aggregate Productivity: General
 
Manuscript Received : Sep 21 2006 Manuscript Accepted : Sep 25 2006

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