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A Factor Endowment Theory of Endogenous Growth and International Trade

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  • Yunfang Hu
  • Murray C. Kemp
  • Koji Shimomura

Abstract

This paper presents a dynamic general equilibrium model of multi‐country, two‐good and two‐factor, in which both long‐run growth and international trade patterns are examined. In each country, government expenditure on a public intermediate good plays a crucial role in the realization of persistent growth. It is shown that the long‐run pattern of international trade is determined in a Heckscher‐Ohlin manner.

Suggested Citation

  • Yunfang Hu & Murray C. Kemp & Koji Shimomura, 2005. "A Factor Endowment Theory of Endogenous Growth and International Trade," Review of Development Economics, Wiley Blackwell, vol. 9(4), pages 467-481, November.
    • Handle: RePEc:bla:rdevec:v:9:y:2005:i:4:p:467-481
    DOI: 10.1111/j.1467-9361.2005.00288.x
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    References listed on IDEAS

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    1. Ryoji Ohdoi, 2007. "Productive Government Spending, Patterns Of Specialization And Economic Growth In A Small Open Economy," The Japanese Economic Review, Japanese Economic Association, vol. 58(1), pages 127-146, March.
    2. Howitt, Peter & Mayer-Foulkes, David, 2005. "R&D, Implementation, and Stagnation: A Schumpeterian Theory of Convergence Clubs," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 37(1), pages 147-177, February.
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    Cited by:

    1. Hu, Yunfang & Ohdoi, Ryoji & Shimomura, Koji, 2008. "Indeterminacy in a two-sector endogenous growth model with productive government spending," Journal of Macroeconomics, Elsevier, vol. 30(3), pages 1104-1123, September.
    2. Akihiko Yanase & Makoto Tawada, 2012. "History‐Dependent Paths And Trade Gains In A Small Open Economy With A Public Intermediate Good," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 53(1), pages 303-314, February.
    3. Takumi Naito & Ryoji Ohdoi, 2011. "A two-country model of trade and growth with intersectoral knowledge spillovers," Journal of Economics, Springer, vol. 103(1), pages 39-58, May.
    4. Basant Kapur, 2015. "A symmetric Heckscher–Ohlin model of endogenous growth," Journal of Economics, Springer, vol. 116(3), pages 183-209, November.
    5. Ida D'Attoma & Silvia Pacei, 2014. "Offshoring and Firm Performance: Evidence from the Italian Manufacturing Industry," Review of Development Economics, Wiley Blackwell, vol. 18(1), pages 29-44, February.
    6. Yunfang Hu & Murray C. Kemp & Koji Shimomura, 2006. "Endogenous Growth: Fragile Foundations?," Review of Development Economics, Wiley Blackwell, vol. 10(1), pages 113-115, February.

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