The Long-run Trade Pattern in a Growing Economy

Research output: Contribution to journalArticle

3 Citations (Scopus)

Abstract

We analyze the determinants of the trade pattern in a two-country growing economy. The long-run trade pattern depends on the structure of the absolute advantage as well as the comparative advantage, because the absolute advantage determines the terms of trade and the value of the marginal product of capital which affect the growth rate in our model. Moreover, we find that opening trade reduces or removes the difference in the growth rates of the two countries when the country lagging in the growth rate has a comparative advantage in a consumption commodity.

Original languageEnglish
Pages (from-to)1-17
Number of pages17
JournalJournal of Economics/ Zeitschrift fur Nationalokonomie
Volume79
Issue number1
DOIs
Publication statusPublished - 2003 May 1
Externally publishedYes

Keywords

  • Convergence
  • Endogenous growth
  • Long-run trade pattern

ASJC Scopus subject areas

  • Business, Management and Accounting(all)
  • Economics and Econometrics

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