CEPII, Recherche et Expertise sur l'economie mondiale
Market Potential and Development


Thierry Mayer

 Abstract :
This paper provides evidence on the long-term impact of market potential on economic development. It derives from the New Economic Geography literature a structural stimation where the level of factors’ income of a country is related to its export capacity, labeled Market Access (MA) by Redding and Venables (2004), or Real Market Potential (RMP) by Head and Mayer (2004). The empirical part evaluates this market potential for all countries in the world with available trade data over the 1960-2003 period and relates it to income per capita. Overall results show that market potential is a powerful driver of increases in income per capita.

 Keywords : MARKET POTENTIAL | ECONOMIC GEOGRAPHY | GRAVITY | DEVELOPMENT

 JEL : F12
CEPII Working Paper
N°2009-24, October 2009

Résumés non-techniques

Texte intégral

Référence
BibTeX (with abstract),
plain text (with abstract),
RIS (with abstract)

Contact: 
 Domaines d'expertise

Compétitivité & Croissance
Retour