A two-country dynamic model of international trade and endogenous growth: Multiple balanced growth paths and stability
AbstractWe formulate a two-country endogenous growth model which explain joint determination of long-run trade patterns and world growth rates. After providing the existence and local stability of the continuum of balanced growth paths, we show that main standard trade propositions hold under some modifications and that, subject to certain conditions concerning social and private rankings of factory intensities between production sectors, the higher is the growth rate, the smaller is the volume of international trade among balanced growth paths in the continuum.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Mathematical Economics.
Volume (Year): 43 (2007)
Issue (Month): 3-4 (April)
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Web page: http://www.elsevier.com/locate/jmateco
Other versions of this item:
- Junko Doi & Kazuo Nishimura & Koji Shimomura, 2006. "A two-country dynamic model of international trade and endogenous growth: multiple balanced growth paths and stability," Discussion Paper Series 188, Research Institute for Economics & Business Administration, Kobe University.
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