Common Market and Equilibrium Growth

We set up a two-sector equilibrium growth model with heterogeneous labor to analyze the impact of the creation of common market on the member countries' growth rate. We show that the economic integration will stimulate the backward country's economic growth. In addition., we prove that whether the economic integration can speed up the advanced country's economic growth or not depends on not only the average talent level of the backward country but also the size of the integrated-economy.