Capital, Skills, and International Trade
This paper examines the decisions made by agents of countries as to their levels of education and physical capital accumulation and the consequent pattern of world trade. The influence on these decisions of the rate of population growth is examined, and it is determined that countries whose populations expand rapidly will invest less in education and in acquiring physical capital and may face a secular deterioration in their terms of trade. Evidence that high-population-growth countries will be relatively poorer and less well educated is confirmed.
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Volume (Year): 24 (1991)
Issue (Month): 2 (May)
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