Consequences

Abstract

Suppose at time t the coefficients a-1i, aoi, a1i are fixed, and bi j, the coefficient of competition or cooperation for nation i and nation j is positive. If bi j is positive, the two nations are cooperating. If bi j is increased the net hereditary growth rate of GDP,

$$\frac{dy_{i}(t)}{dt}-a_{-li}\frac{dy_{i}(t-h)}{dt}$$

is increased, i.e. the production of goods and services grows bigger. Cooperation enhances economic growth. Suppose bi j, the coefficient of competition is negative, decreasing competition will increase the net growth rate. Increasing competition will decrease the net growth rate.