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Author: Karine Yenokyan
Publisher:
ISBN:
Category :
Languages : en
Pages : 35
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Book Description
We study the world trading equilibrium in a Ricardian model where factors of production are themselves produced and tradable rather than endowed and non-tradable, corresponding to the three-quarters of international trade that is in intermediate and capital goods. We show that trade affects economic growth purely through comparative advantage, even in the absence of technology transfer, research and development, and international investment, and also in the absence of aggregate scale effects. Trade may raise a country's growth rate or leave it unchanged. When a world balanced growth rate exists, trade always raises the growth rate of both trading partners. Otherwise, either one partner's growth rate is increased and the other is unaffected or neither partner's growth rate is affected, depending on the patterns of comparative and absolute advantage. Trade's effect on a country's growth rate depends on the nature of the imported good and not the exported good, a result contrary to the direction of many countries' export policies. Trade in factors of production effectively transfers technology by producing an equilibrium identical to that which would obtain if technology had been transferred between trading partners even though no such transfer actually occurs, which suggests that existing empirical evidence on the relation between trade and technology transfer may not be evidence that trade facilitates actual technology transfer. We show the conditions under which factor price equalization, the Stolper-Samuelson theorem, and the Rybczynski theorem hold. We perform a numerical analysis of the transition dynamics, which appear to be saddle-point stable but may be monotonic or oscillatory in converging to the balanced growth path.
Author: Karine Yenokyan
Publisher:
ISBN:
Category :
Languages : en
Pages : 35
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Book Description
We study the world trading equilibrium in a Ricardian model where factors of production are themselves produced and tradable rather than endowed and non-tradable, corresponding to the three-quarters of international trade that is in intermediate and capital goods. We show that trade affects economic growth purely through comparative advantage, even in the absence of technology transfer, research and development, and international investment, and also in the absence of aggregate scale effects. Trade may raise a country's growth rate or leave it unchanged. When a world balanced growth rate exists, trade always raises the growth rate of both trading partners. Otherwise, either one partner's growth rate is increased and the other is unaffected or neither partner's growth rate is affected, depending on the patterns of comparative and absolute advantage. Trade's effect on a country's growth rate depends on the nature of the imported good and not the exported good, a result contrary to the direction of many countries' export policies. Trade in factors of production effectively transfers technology by producing an equilibrium identical to that which would obtain if technology had been transferred between trading partners even though no such transfer actually occurs, which suggests that existing empirical evidence on the relation between trade and technology transfer may not be evidence that trade facilitates actual technology transfer. We show the conditions under which factor price equalization, the Stolper-Samuelson theorem, and the Rybczynski theorem hold. We perform a numerical analysis of the transition dynamics, which appear to be saddle-point stable but may be monotonic or oscillatory in converging to the balanced growth path.
Author: James Daniel Theberge
Publisher: John Wiley & Sons
ISBN:
Category : Business & Economics
Languages : en
Pages : 568
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Book Description
Monographic compilation of readings in the economic theory of trade in relation to economic development - covers the effects of industrialization on exports, comparative advantage and development policy, Terms of Trade and economic development, tariff negotiation, technology transfer, capital formation, foreign investment in developing countries, policy obstacles to trade and development, etc. References and statistical tables.
Author: Ronald Findlay
Publisher: MIT Press
ISBN: 9780262061759
Category : Business & Economics
Languages : en
Pages : 202
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Book Description
In these six essays Ronald Findlay explores modifications to the factor proportions model, looking in particular at what happens when human capital and land use are allowed to vary endogenously. The standard version of the Heckscher-Ohlin model of international trade treats the factors of production--land, labor, and capital--as essentially analytically similar and symmetrical. In these six essays Ronald Findlay explores modifications to the factor proportions model, looking in particular at what happens when human capital and land use are allowed to vary endogenously.Findlay extends the factor proportions theory of international trade to consider capital accumulation, income distribution, and factor mobility in a growing world economy. Among the questions he addresses are such fundamental issues as the conditions under which international trade equalizes the rate of interest; the effects of learning and invention on economic growth and comparative advantage; the role of human capital and skill formation in determining patterns of comparative advantage and the reciprocal effect of international trade on these variables through its impact on wage differentials between skilled and unskilled workers; the incorporation of new territories into a trading system by extensions of the frontier and labor migration as in the establishment of the Atlantic economy of the nineteenth century; and the impact of reductions in transport costs of industrial raw materials on global patterns of manufacturing activity and comparative advantage.The Ohlin Lectures
Author: C.A. van Bochove
Publisher: Springer Science & Business Media
ISBN: 9400976844
Category : Business & Economics
Languages : en
Pages : 345
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Book Description
The research for this project was carried out while the author was at the staff of the Economics Faculty of Erasmus University Rotterdam. The core results were recorded in discussion papers 7821/G, 7901/G, 7910/G and 8002/G of the faculty's Institute for Economic Research. Working on the project I incurred considerable debts to some professors and fellow staff members of the faculty. Professor P. J. Verdoorn initiated this study by suggesting its subject and by encouraging me to turn my initially hesitantly held view of imports as 'indispensable' inputs into the cornerstone of the analysis; he also read the final manuscript. Professor H. C. Bos' enthusiastic encouragement greatly stimulated me in the arduous phase of the writing of the manuscript; his advise on style and emphasis considerably improved the presentation while his careful reading of the various versions of the manuscript eliminated many non sequiturs and some errors. I am deeply in debt to A. S. W. de Vries who scrutinized not only the manuscript but also the preliminary discussion papers; while sharing an office room with him for six years I had the benefit of many stimulating discussions and he equanimously put up with my moods when I was stuck at some point. I am also in debt to D. P. Broer for checking and improving the optimal control theorem in chapter 7; to Professor R. Harkema for inducing me to write sections 5. 1 and 5.
Author: C.C. Onyemelukwe
Publisher: Routledge
ISBN: 1315500116
Category : Business & Economics
Languages : en
Pages : 690
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Book Description
A theoretical framework aiming to facilitate study of development economics. The author presents his theory in three sections: how advanced nations developed; a proposed third dimension, in addition to labour and capital; and why capital accumulation is unnecessary, even potentially harmful.
Author: A. P. Thirlwall
Publisher: Edward Elgar Publishing
ISBN: 1781955336
Category : Business & Economics
Languages : en
Pages : 201
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Book Description
This concise yet insightful sequel to the highly acclaimed The Nature of Economic Growth provides a comprehensive critique of both old and new growth theory, highlighting the importance of economic growth for reducing poverty. A.P. Thirlwall illustrates that orthodox growth theory continues to work with Ôone-goodÕ models and to treat factor supplies as exogenously given, independent of demand. Orthodox trade theory still ignores the balance of payments consequences of different patterns of trade specialisation when assessing the welfare effects of trade. The author goes on to present theory underpinned by up-to-date empirical evidence that factors of production and productivity growth are endogenous to demand, and that the structure of production and trade matter for the long-run growth performance of countries because of their impact on the balance of payments. He concludes that trade liberalisation has proved disappointing in improving the trade-off between growth and the balance of payments. This book will provide a challenging read for students and academics in the fields of economics, heterodox economics, and development. Policymakers focussing on the relationship between growth, trade and the balance of payments will also find the book to be of great interest.
Author: Bjarne Sloth Jensen
Publisher: University of Michigan Press
ISBN: 0472026410
Category : Business & Economics
Languages : en
Pages : 385
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Book Description
While endogenous growth theory has claimed success in modeling various factors of growth and providing an analysis of sustainable economic growth, most of the growth models in published work are for closed economies. The omission of international trade, which is often regarded as the engine of growth, greatly reduces their usefulness. The theory of international trade, on the other hand, is characterized by models that are mainly static. While interest in the dynamics of trade has been growing, there is still little work in this area. The success of the newly industrialized economies that have adopted trade-oriented policies suggests how limited present trade theory is in explaining and analyzing the growth of these economies. The work collected here serves to bridge the "old" growth theory and "new" growth theory; merge growth and trade theory; suggest new analysis and techniques of economic growth; and provide analysis of new issues related to growth and trade. The first chapter surveys endogenous growth and international trade and critically reviews the endogenous growth theory with a unified framework, covering the work on both closed and open economies. Three chapters examine the dynamics of some basic trade models; two chapters focus on growth and trade with endogenous accumulation of human and public capital; two chapters on economic growth, technological progress, and international trade; and two chapters on growth and international factor movements. Contributors include Eric W. Bond, Theo S. Eicher, Rolf Färe, Oded Galor, Shawna Grosskopf, Bjarne S. Jensen, Pantelis Kalaitzidakis, Shoukang Lin, Ngo Van Long, Kazuo Nishimura, Koji Shimomura, Kathleen Trask, Stephen J. Turnovsky, Pham Hoang Van, Henry Wan, Jr., Chunyan Wang, and Kar-yiu Wong. Bjarne S. Jensen is Associate Professor of Economics, Copenhagen Business School. Kar-yiu Wong is Professor of Economics, University of Washington, Seattle.
Author: David Weil
Publisher: Routledge
ISBN: 1315510448
Category : Business & Economics
Languages : en
Pages : 586
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Book Description
Why are some countries rich and others poor? David N. Weil, one of the top researchers in economic growth, introduces students to the latest theoretical tools, data, and insights underlying this pivotal question. By showing how empirical data relate to new and old theoretical ideas, Economic Growth provides students with a complete introduction to the discipline and the latest research. With its comprehensive and flexible organization, Economic Growth is ideal for a wide array of courses, including undergraduate and graduate courses in economic growth, economic development, macro theory, applied econometrics, and development studies.
Author: Aaditya Mattoo
Publisher: World Bank Publications
ISBN:
Category :
Languages : en
Pages : 38
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Book Description
The competitiveness of firms in open economies is increasingly determined by access to low-cost and high-quality producer services - telecommunications, transport and distribution services, financial intermediation, etc. This paper discusses the role of services in economic growth, focusing in particular on channels through which openness to trade in services may increase productivity at the level of the economy as a whole, industries and the firm. The authors explore what recent empirical work suggests could be done to enhance comparative advantage in the production and export of services and how to design policy reforms to open services markets to greater foreign participation in a way that ensures not just greater efficiency but also greater equity in terms of access to services.
Author: Ragnar Nurkse
Publisher:
ISBN:
Category : Commerce
Languages : en
Pages : 68
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Book Description
