Advanced Search
MyIDEAS: Login to save this article or follow this journal

Neoclassical Growth and Commodity Trade

Contents:

Author Info

  • Alejandro Cunat

    (LSE)

  • Marco Maffezzoli

    (IGIER)

Abstract

We construct a dynamic Heckscher-Ohlin model in which the initial distribution of production factors across economies makes factor price equalization impossible. The model produces dynamics similar to those of the neoclassical growth model. However, free trade prevents identically parameterized economies from achieving identical steady states. Although poor economies grow faster than rich economies during the transition to the steady state, the former do not catch up with the income per capita levels of the latter. A many-country version of the model exemplifies the open-economy neoclassical growth model's ability to produce interesting distribution dynamics of income per capita. (Copyright: Elsevier)

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://dx.doi.org/10.1016/j.red.2004.01.001
File Function: Full text
Download Restriction: Access to full texts is restricted to ScienceDirect subscribers and ScienceDirect institutional members. See http://www.sciencedirect.com/ for details.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Elsevier for the Society for Economic Dynamics in its journal Review of Economic Dynamics.

Volume (Year): 7 (2004)
Issue (Month): 3 (July)
Pages: 707-736

as in new window
Handle: RePEc:red:issued:v:7:y:2004:i:3:p:707-736

Contact details of provider:
Postal: Review of Economic Dynamics Academic Press Editorial Office 525 "B" Street, Suite 1900 San Diego, CA 92101
Fax: 1-314-444-8731
Email:
Web page: http://www.EconomicDynamics.org/review.htm
More information through EDIRC

Order Information:
Email:
Web: http://www.EconomicDynamics.org/RED17.htm

Related research

Keywords: International trade; Heckscher-Ohlin; Economic growth; Convergence;

Other versions of this item:

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Barro, R.J., 1989. "Economic Growth In A Cross Section Of Countries," RCER Working Papers, University of Rochester - Center for Economic Research (RCER) 201, University of Rochester - Center for Economic Research (RCER).
  2. N. Gregory Mankiw & David Romer & David N. Weil, 1990. "A Contribution to the Empirics of Economic Growth," NBER Working Papers 3541, National Bureau of Economic Research, Inc.
  3. Aart Kraay & Norman Loayza & Luis Servén, 2001. "Country portfolios," Working Papers Central Bank of Chile, Central Bank of Chile 91, Central Bank of Chile.
  4. Eric W. Bond & Kathleen Trask & Ping Wang, 2003. "Factor Accumulation and Trade: Dynamic Comparative Advantage with Endogenous Physical and Human Capital," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 44(3), pages 1041-1060, 08.
  5. Donald R. Davis & David E. Weinstein, 1998. "An Account of Global Factor Trade," Harvard Institute of Economic Research Working Papers, Harvard - Institute of Economic Research 1849, Harvard - Institute of Economic Research.
  6. Acemoglu, Daron & Ventura, Jaume, 2001. "The World Income Distribution," CEPR Discussion Papers, C.E.P.R. Discussion Papers 2973, C.E.P.R. Discussion Papers.
  7. Robert G. King & Sergio T. Rebelo, 1989. "Transitional Dynamics and Economic Growth in the Neoclassical Model," NBER Working Papers 3185, National Bureau of Economic Research, Inc.
  8. Ventura, Jaume, 1997. "Growth and Interdependence," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 112(1), pages 57-84, February.
  9. Francesco Caselli & Gerardo Esquivel & Fernando Lefort, 1997. "Reopening the Convergence Debate: A New Look at Cross-Country Growth Empirics," Working Papers Central Bank of Chile, Central Bank of Chile 03, Central Bank of Chile.
  10. repec:fth:michin:402 is not listed on IDEAS
  11. Per Krusell & Jose-Victor Rios-Rull, 1997. "On the size of U.S. government: political economy in the neoclassical growth model," Staff Report, Federal Reserve Bank of Minneapolis 234, Federal Reserve Bank of Minneapolis.
  12. Deardorff, A.V., 1991. "The Possibility of Factor Price Equalization, Revisited," Working Papers, Research Seminar in International Economics, University of Michigan 277, Research Seminar in International Economics, University of Michigan.
  13. Michele Boldrin & Fabio Canova, 2001. "Inequality and convergence in Europe's regions: reconsidering European regional policies," Economic Policy, CEPR;CES;MSH, CEPR;CES;MSH, vol. 16(32), pages 205-253, 04.
  14. Judd, Kenneth L., 1992. "Projection methods for solving aggregate growth models," Journal of Economic Theory, Elsevier, Elsevier, vol. 58(2), pages 410-452, December.
  15. Debaere, Peter & Demiroglu, Ufuk, 2003. "On the similarity of country endowments," Journal of International Economics, Elsevier, Elsevier, vol. 59(1), pages 101-136, January.
  16. Fabio Canova & Albert Marcet, 1995. "The poor stay poor: Non-convergence across countries and regions," Economics Working Papers, Department of Economics and Business, Universitat Pompeu Fabra 137, Department of Economics and Business, Universitat Pompeu Fabra, revised Jun 1999.
  17. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, Elsevier, vol. 22(1), pages 3-42, July.
  18. James Harrigan, 2001. "Specialization and the Volume of Trade: Do the Data Obey the Laws?," NBER Working Papers 8675, National Bureau of Economic Research, Inc.
  19. Deardorff, Alan V, 2001. "Rich and Poor Countries in Neoclassical Trade and Growth," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 111(470), pages 277-94, April.
  20. Donald R. Davis & David E. Weinstein, 2002. "The factor content of trade," Discussion Papers, Columbia University, Department of Economics 0102-01, Columbia University, Department of Economics.
  21. Stiglitz, Joseph E, 1970. "Factor Price Equalization in a Dynamic Economy," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 78(3), pages 456-88, May-June.
  22. Andrew Atkeson & Patrick J. Kehoe, 2000. "Paths of development for early- and late-bloomers in a dynamic Heckscher-Ohlin model," Staff Report, Federal Reserve Bank of Minneapolis 256, Federal Reserve Bank of Minneapolis.
  23. Quah, Danny T, 1996. "Twin Peaks: Growth and Convergence in Models of Distribution Dynamics," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 106(437), pages 1045-55, July.
  24. Repetto, A. & Ventura, J., 1997. "The Leontief-Trefler Hypothesis and Factor Price Insensitivity," Working papers, Massachusetts Institute of Technology (MIT), Department of Economics 97-13, Massachusetts Institute of Technology (MIT), Department of Economics.
  25. Dornbusch, Rudiger & Fischer, Stanley & Samuelson, Paul A, 1980. "Heckscher- Ohlin Trade Theory with a Continuum of Goods," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 95(2), pages 203-24, September.
  26. Danny Quah, 1996. "Twin Peaks: Growth and Convergence in Models of Distribution Dynamics," CEP Discussion Papers, Centre for Economic Performance, LSE dp0280, Centre for Economic Performance, LSE.
  27. Lucas, Robert E, Jr, 1990. "Why Doesn't Capital Flow from Rich to Poor Countries?," American Economic Review, American Economic Association, American Economic Association, vol. 80(2), pages 92-96, May.
  28. Zhiqi Chen, 1992. "Long-Run Equilibria in a Dynamic Heckscher-Ohlin Model," Canadian Journal of Economics, Canadian Economics Association, Canadian Economics Association, vol. 25(4), pages 923-43, November.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Claustre Bajona & Timothy J. Kehoe, 2006. "Demographics in Dynamic Heckscher-Ohlin Models: Overlapping Generations Versus Infinitely Lived Consumers," NBER Working Papers 12566, National Bureau of Economic Research, Inc.
  2. Partha Chatterjee & Malik Shukayev, 2013. "A Stochastic Dynamic Model of Trade and Growth: Convergence and Diversi?cation," Working Papers, Development and Policies Research Center (DEPOCEN), Vietnam 07, Development and Policies Research Center (DEPOCEN), Vietnam.
  3. Lars Calmfors & Giancarlo Corsetti & Seppo Honkapohja & John Kay & Gilles Saint-Paul & Hans-Werner Sinn & Jan-Egbert Sturm & Xavier Vives, 2006. "Chapter 2: Global Imbalances," EEAG Report on the European Economy, CESifo Group Munich, CESifo Group Munich, vol. 0, pages 50-67, 03.
  4. Ventura, Jaume, 2005. "A Global View of Economic Growth," Handbook of Economic Growth, Elsevier, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 22, pages 1419-1497 Elsevier.
  5. Leimbach, Marian & Edenhofer, Ottmar, 2007. "Technological spillovers within multi-region models: Intertemporal optimization beyond the Negishi approach," Economic Modelling, Elsevier, Elsevier, vol. 24(2), pages 272-294, March.
  6. Alejandro Cuñat & Marco Maffezzoli, . "Trade Integration and Growth," Working Papers, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University 220, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
  7. Lutz Arnold, 2007. "A generalized multi-country endogenous growth model," International Economics and Economic Policy, Springer, Springer, vol. 4(1), pages 61-100, April.
  8. Catia Batista & Jacques Potin, 2007. "Heckscher-Ohlin Specialization and the Marginal Product of Capital, 1976-2000," Economics Series Working Papers, University of Oxford, Department of Economics 357, University of Oxford, Department of Economics.
  9. Batista, Catia & Potin, Jacques, 2008. "International Specialization and the Return to Capital, 1976-2000," ESSEC Working Papers, ESSEC Research Center, ESSEC Business School DR 08001, ESSEC Research Center, ESSEC Business School.
  10. Alejandro Cuñat & Marco Maffezzoli, 2005. "Can Comparative Advantage Explain the Growth of US Trade?," CEP Discussion Papers, Centre for Economic Performance, LSE dp0669, Centre for Economic Performance, LSE.
  11. Claustre Bajona & Timothy J. Kehoe, 2008. "Trade, growth, and convergence in a dynamic Heckscher-Ohlin model," Staff Report, Federal Reserve Bank of Minneapolis 378, Federal Reserve Bank of Minneapolis.
  12. Petros Milionis, 2012. "Long-Run Development in the Open Economy," DEGIT Conference Papers, DEGIT, Dynamics, Economic Growth, and International Trade c017_059, DEGIT, Dynamics, Economic Growth, and International Trade.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:red:issued:v:7:y:2004:i:3:p:707-736. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christian Zimmermann).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.