IDEAS home Printed from https://ideas.repec.org/a/bla/ecorec/v57y1981i3p251-260.html
   My bibliography  Save this article

Specialization and Dynamics in a Trade Model

Author

Listed:
  • R. MANNING

Abstract

An economy which can produce two tradeable goods, and an investment good which augments capital stocks, is shown to specialize in an optimal stationary state unless it is in the interior of a continuum from which no change is ever needed. On the traverse to a stationary state, non‐specialization occurs if at all for only a finite time. Although the instantaneous production frontier is concave, the long‐run frontier is linear, but the long‐run rate of product transformation differs from the supply price ratio with positive time‐preference. Long‐run specialization may differ from that predicted by long‐run comparative advantage.

Suggested Citation

  • R. Manning, 1981. "Specialization and Dynamics in a Trade Model," The Economic Record, The Economic Society of Australia, vol. 57(3), pages 251-260, September.
    • Handle: RePEc:bla:ecorec:v:57:y:1981:i:3:p:251-260
    DOI: 10.1111/j.1475-4932.1981.tb01059.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1475-4932.1981.tb01059.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1475-4932.1981.tb01059.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. H. Oniki & H. Uzawa, 1965. "Patterns of Trade and Investment in a Dynamic Model of International Trade," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 32(1), pages 15-37.
    2. Manning, Richard, 1982. "Trade, Education and Growth: The Small-Country Case," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 23(1), pages 83-106, February.
    3. Kemp, Murray C & Long, Ngo Van, 1979. "International Trade with an Exhaustible Resource: A Theorem of Rybczynski Type," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 20(3), pages 671-677, October.
    4. Manning, R., 1979. "Two theorems concerning optimal educational policy in balanced growth," Journal of Economic Theory, Elsevier, vol. 21(3), pages 465-472, December.
    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


    Cited by:

    1. Yoshiyasu Ono & Akihisa Shibata, 2010. "Time Patience and Specialization Patterns in the Presence of Asset Trade," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 42(1), pages 93-112, February.
    2. Xiaobing Xing & Jiexiang Xu, 2014. "The saving rate and the upgrade of the trade commodity structure in developing countries: A dynamic H-O model under an oligopolistic market structure," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 23(8), pages 1145-1169, December.
    3. Koichi Futagami & Akihiko Kaneko & Yoshiyasu Ono & Akihisa Shibata, 2008. "International Asset Trade, Capital Income Taxation, and Specialization Patterns," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 10(5), pages 743-763, October.
    4. Brecher, Richard A. & Chen, Zhiqi & Choudhri, Ehsan U., 2005. "Dynamic stability in a two-country model of optimal growth and international trade," Journal of Economic Dynamics and Control, Elsevier, vol. 29(3), pages 583-594, March.
    5. Akihiko Yanase & Makoto Tawada, 2017. "Public infrastructure for production and international trade in a small open economy: a dynamic analysis," Journal of Economics, Springer, vol. 121(1), pages 51-73, May.
    6. Brigitte Desroches & Michael Francis, 2006. "Institutional Quality, Trade, and the Changing Distribution of World Income," Staff Working Papers 06-19, Bank of Canada.
    7. Yoshiyasu Ono & Akihisa Shibata, 2006. "Capital Income Taxation and Specialization Patterns: Investment Tax vs. Saving Tax," ISER Discussion Paper 0649, Institute of Social and Economic Research, The University of Osaka.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Daniel Leonard, 1990. "Richard Manning 1943–1989," The Economic Record, The Economic Society of Australia, vol. 66(2), pages 171-174, June.
    2. Shea, K. -L. & Woodfield, A. E., 1996. "Optimal immigration, education and growth in the long run," Journal of International Economics, Elsevier, vol. 40(3-4), pages 495-506, May.
    3. Maria Dolores Guillo & Fidel Perez-Sebastian, 2015. "Convergence in a Dynamic Heckscher–Ohlin Model with Land," Review of Development Economics, Wiley Blackwell, vol. 19(3), pages 725-734, August.
    4. Fukao Kyoji & Hamada Koichi, 1994. "International Trade and Investment under Different Rates of Time Preference," Journal of the Japanese and International Economies, Elsevier, vol. 8(1), pages 22-52, March.
    5. Ngo Van Long, 1983. "The Effects of a Booming Export Industry on the Rest of the Economy," The Economic Record, The Economic Society of Australia, vol. 59(1), pages 57-60, March.
    6. Karine Constant & Marion Davin, 2019. "Unequal Vulnerability to Climate Change and the Transmission of Adverse Effects Through International Trade," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(2), pages 727-759, October.
    7. Wei-Bin Zhang, 2018. "A Growth Theory Based on Walrasian General Equilibrium, Solow-Uzawa Growth, and Heckscher-Ohlin Trade Theories," Interdisciplinary Description of Complex Systems - scientific journal, Croatian Interdisciplinary Society Provider Homepage: http://indecs.eu, vol. 16(3-B), pages 452-464.
    8. Rizwana Siddiqui & A. R. Kemal, 2006. "Poverty-reducing or Poverty-inducing? A CGE-based Analysis of Foreign Capital Inflows in Pakistan," PIDE-Working Papers 2006:2, Pakistan Institute of Development Economics.
    9. Alan V. Deardorff, 2011. "Rich And Poor Countries In Neoclassical Trade And Growth," World Scientific Book Chapters, in: Robert M Stern (ed.), Comparative Advantage, Growth, And The Gains From Trade And Globalization A Festschrift in Honor of Alan V Deardorff, chapter 25, pages 295-313, World Scientific Publishing Co. Pte. Ltd..
    10. Chun‐Yan Kuo, 1977. "Intermediate Products and the Two‐Sector Growth Model in an Open Economy," The Economic Record, The Economic Society of Australia, vol. 53(1), pages 96-109, March.
    11. Wei-Bin Zhang, 2014. "Multi-regional economic growth with public good and regional fiscal policies in a small-open economy," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 52(2), pages 409-429, March.
    12. E. Young Song, 2014. "Trade and the Speed of Convergence," Review of Development Economics, Wiley Blackwell, vol. 18(1), pages 1-12, February.
    13. María Dolores Guilló, 1995. "Terms-Of-Trade And The Current Account: A Two-Country/Two-Sector Growth Model," Working Papers. Serie AD 1995-03, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    14. Zhang, Wei-Bin, 1997. "A two-region model with endogenous capital and knowledge--locational amenities and preferences," International Review of Economics & Finance, Elsevier, vol. 6(1), pages 1-16.
    15. Alejandro Cuñat & Marco Maffezzoli, 2007. "Can Comparative Advantage Explain the Growth of us Trade?," Economic Journal, Royal Economic Society, vol. 117(520), pages 583-602, April.
    16. Wei-Bin Zhang, 1995. "Leisure time, savings and trade patterns A two-country growth model," Economic Modelling, Elsevier, vol. 12(4), pages 425-434, October.
    17. repec:bla:reviec:v:17:y:2009:i:si:p:371-391 is not listed on IDEAS
    18. Bianconi, Marcelo, 1995. "On dynamic real trade models," Economics Letters, Elsevier, vol. 47(1), pages 47-52, January.
    19. Akihiko Yanase & Yukio Karasawa-Ohtashiro, 2019. "Endogenous time preference, consumption externalities, and trade: multiple steady states and indeterminacy," Journal of Economics, Springer, vol. 126(2), pages 153-177, March.
    20. Serdar Sayan, 2002. "Dynamic Heckscher-Ohlin Results from a 2x2x2x2 Overlapping Generations Model with Unequal Population Growth Rates," GE, Growth, Math methods 0203002, University Library of Munich, Germany, revised 14 Mar 2002.
    21. Wei-Bin Zhang, 2020. "Growth, Wealth Accumulation and Environmental Change in Portfolio Choice and Trade," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 18(2), pages 197-216.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ecorec:v:57:y:1981:i:3:p:251-260. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/esausea.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.