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Trade and Endogenous Growth with Ricardo‐Viner Production Technology

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  • SATISH CHAND

Abstract

This paper derives three main results. First, learning by doing is sufficient to generate endogenous growth under Ricardo‐ Viner production technology. One implication of this result is that policy has a role when agents do not intermalize the dynamic gains from learning. Second, trade is advantageous for a small country and in the case of domestic goods having low elasticity of substitution in final consumption, high human capital content and/or a high learning rate. Third, border distortions in the form of import tariffs can affect pattern of specialization and long‐run growth but only for large economies and under very special circumstances.

Suggested Citation

  • Satish Chand, 1998. "Trade and Endogenous Growth with Ricardo‐Viner Production Technology," The Economic Record, The Economic Society of Australia, vol. 74(224), pages 15-23, March.
    • Handle: RePEc:bla:ecorec:v:74:y:1998:i:224:p:15-23
    DOI: 10.1111/j.1475-4932.1998.tb01900.x
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    References listed on IDEAS

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    1. Francisco L. Rivera-Batiz & Luis A. Rivera-Batiz, 2018. "Economic Integration and Endogenous Growth," World Scientific Book Chapters, in: Francisco L Rivera-Batiz & Luis A Rivera-Batiz (ed.), International Trade, Capital Flows and Economic Development, chapter 1, pages 3-32, World Scientific Publishing Co. Pte. Ltd..
    2. Alwyn Young, 1991. "Learning by Doing and the Dynamic Effects of International Trade," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(2), pages 369-405.
    3. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    4. Alwyn Young, 1991. "Learning by Doing and the Dynamic Effects of International Trade," NBER Working Papers 3577, National Bureau of Economic Research, Inc.
    5. Edwards, Sebastian, 1992. "Trade orientation, distortions and growth in developing countries," Journal of Development Economics, Elsevier, vol. 39(1), pages 31-57, July.
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    Cited by:

    1. Wataru Johdo, 2025. "Agglomeration and non-agglomeration countries and the growth effects of protectionist trade policies," International Economics and Economic Policy, Springer, vol. 22(1), pages 1-15, February.

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