This paper deals with the overall effects on national integration based upon the endogenous growth theory. The core assignment is to evaluate how different hypotheses on the knowledge diffusion and qualification of labor among integrated regions affect the growth path of product, capital and consumption. It is demonstrated that in the absence of knowledge diffusion, the least developed region tends to become specialized in manufacturing, while the leader region keeps its manufacturing diversification and dictates the growth path of all regions. On the other hand, if the knowledge diffusion takes place, all regions maintain the manufacturing diversification process and creation of new technologies. Yet, it is also verified that a nationwide integration affects positively the economic growth path, regardless the knowledge diffusion.
economic growth; national integration; knowledge diffusion