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Free Trade and Economic Growth

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  • Kuo-Hsing Kuo
  • Cheng-Te Lee
  • Chen Fang

Abstract

type="main"> This paper extends the Das (2005) model to set up an equilibrium growth model with heterogeneous labor to analyse the growth effects after trade openness. We prove that if the terms of trade large enough before opening trade, then it is more likely that opening trade would accelerate economic growth for a small open country, vice versa.

Suggested Citation

  • Kuo-Hsing Kuo & Cheng-Te Lee & Chen Fang, 2014. "Free Trade and Economic Growth," Australian Economic Papers, Wiley Blackwell, vol. 53(1-2), pages 69-76, June.
    • Handle: RePEc:bla:ausecp:v:53:y:2014:i:1-2:p:69-76
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    File URL: http://hdl.handle.net/10.1111/1467-8454.12021
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    References listed on IDEAS

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    Cited by:

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    2. Yibing Ding & Jiantong Li, 2018. "Product Space, Potential Comparative Advantages and Export Technological Complexity," Australian Economic Papers, Wiley Blackwell, vol. 57(3), pages 218-237, September.

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