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Trade Induced Convergence in Credit Constrained Economies

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Author Info
Ranjan, P.

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Abstract

This paper constructs a model where otherwise identical economies having different initial conditions are in different steady-states in autarky because skill accumulation is subject to credit constraint. In a two country world it is shown how international trade in goods can cause complete convergence in skill endowments and per capita outputs of trading economies.

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Publisher Info
Paper provided by California Irvine - School of Social Sciences in its series Papers with number 00-01.

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Length: 27 pages
Date of creation: 2000
Date of revision:
Handle: RePEc:fth:calirv:00-01

Contact details of provider:
Postal: UNIVERSITY OF CALIFORNIA IRVINE, SCHOOL OF SOCIAL SCIENCES, IRVINECALIFORNIA 91717 U.S.A.

For technical questions regarding this item, or to correct its listing, contact: (Thomas Krichel).

Related research
Keywords: INTERNATIONAL TRADE ; ECONOMIC GROWTH ; EXPERIMENTS;

Find related papers by JEL classification:
F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies
F15 - International Economics - - Trade - - - Economic Integration
F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

Statistics
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This page was last updated on 2009-11-20.

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