International status seeking, trade, and growth leadership

Simone Valente

Research output: Contribution to journalArticlepeer-review

7 Citations (Scopus)


We study a two-country endogenous growth model where the utility of agents in developing countries is affected by consumption gaps with advanced economies. International status seeking tends to revert growth differentials in favour of the developing country. Preferences with endogenous status desire generate convergence in growth rates in the presence of structural gaps and convergence in income levels if productivity differences disappear. This process is driven by declining terms of trade and faster capital accumulation of the status seeker. The model predictions are shown to be consistent with the stylized facts that characterized the growth performance of East Asian economies.
Original languageEnglish
Pages (from-to)554-589
Number of pages36
JournalThe Canadian Journal of Economics
Issue number2
Early online date3 Apr 2009
Publication statusPublished - May 2009


  • O33
  • F12
  • D91

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