Trade Induced Convergence in Credit Constrained Economies
AbstractThis 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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Bibliographic InfoPaper provided by California Irvine - School of Social Sciences in its series Papers with number 00-01.
Length: 27 pages
Date of creation: 2000
Date of revision:
Contact details of provider:
Postal: UNIVERSITY OF CALIFORNIA IRVINE, SCHOOL OF SOCIAL SCIENCES, IRVINECALIFORNIA 91717 U.S.A.
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
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