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A Two-Sector Growth Model with an Intermediate Product

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  • CHUN-YAN KUO

    (University of Western Ontario)

Abstract

This paper is a comment note on the article by R. N. Batra and R. Singh for their strong conditions required for the existence of the short-run equilibrium and the long-run equilibrium in a two-sector growth model with an intermediate product. Our paper shows that the factor intensities of final goods sectors in the gross and the relative gross shares of primary factors are crucial in determining the properties of the model. All the conditions for stability are in fact much weaker than those derived by Batra and Singh due to their neglect of drawing a distinction between the net and the gross capital/labour ratios of a final good.

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File URL: http://www.queensjdiexec.org/publications/qed_dp_185.pdf
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Bibliographic Info

Paper provided by JDI Executive Programs in its series Development Discussion Papers with number 1974-06.

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Length: 4 pages
Date of creation: Jan 1974
Date of revision:
Handle: RePEc:qed:dpaper:185

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Related research

Keywords: two-sector growth model; intermediate products; capital/labour ratio; existence; stability; long-run equilibrium;

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  1. Batra, Raveendra N & Casas, Francisco R, 1973. "Intermediate Products and the Pure Theory of International Trade: A Neo-Heckscher-Ohlin Framework," American Economic Review, American Economic Association, vol. 63(3), pages 297-311, June.
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