TRADE , DEVELOPMENT AND CONVERGING GROWTH RATES Dynamic Gains From Trade Reconsidered

@inproceedings{Eicher1998TRADED,
  title={TRADE , DEVELOPMENT AND CONVERGING GROWTH RATES Dynamic Gains From Trade Reconsidered},
  author={Theo S. Eicher},
  year={1998}
}
Within an endogenous growth framework, we examine dynamic gains from trade for parametrically distinct countries. In the absence of international spillovers or factor mobility, previous endogenous growth models generally imply that trade in goods must amplify differences in (1) factor endowments, (2) rates of technical change and (3) economic growth. Even the dynamic HOS model suggests that trade intensifies differences in endogenous factor endowments. In contrast, we present a model where… CONTINUE READING
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