Carmen D. Álvarez-Albelo () (Departamento de Análisis Económico, Facultad de Ciencias Económicas, Universidad de La Laguna and CREB) Antonio Manresa () (CREB, Universitat de Barcelona) Monica Pigem-Vigo () (CREB, Universitat de Barcelona)
Abstract
Can international trade act as the sole engine of growth for an economy? If yes, what are the mechanisms through which trade operates in transmitting permanent growth? This paper answers these questions with two simple two-country models, in which only one country enjoys sustained growth in autarky. The models differ in the assumptions on technical change, which is either labour- or capital-augmenting. In both cases, the stagnant economy imports growth by trading. In the first model, growth is transmitted because of permanent increases in the trade volume. In the alternative framework, the stagnant economy imports sustained growth because its terms of trade permanently improve.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. 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.
Publisher Info
Paper provided by Xarxa de Referència en Economia Aplicada (XREAP) in its series Working Papers with number
XREAP2009-6.
Length: 29 pages Date of creation: Jun 2009 Date of revision:
Jun 2009 Handle: RePEc:xrp:wpaper:xreap2009-6
Contact details of provider: Postal: Espai de Recerca en Economia, Facultat de Ci�ncies Econ�miques i Empresarials, Universitat de Barcelona, c/ Tinent Coronel Valenzuela, 1-11, 08034 Barcelona Phone: +34+934039653 Email: Web page: http://www.pcb.ub.es/xreap More information through EDIRC
For technical questions regarding this item, or to correct its listing, contact: ().