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Rich and Poor Countries in Neoclassical Trade and Growth

  • Deardorff, A.V.

A neoclassical growth model is used to provide an explanation for a "poverty trap," or "club convergence," in terms of specialization and international trade. The model has a large number of countries with access to identical constant-returns-to-scale technologies for producing and trading three goods using capital and labor.

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Paper provided by Research Seminar in International Economics, University of Michigan in its series Working Papers with number 402.

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Length: 41 pages
Date of creation: 1997
Date of revision:
Handle: RePEc:mie:wpaper:402
Contact details of provider: Postal: ANN ARBOR MICHIGAN 48109
Web page: http://fordschool.umich.edu/rsie/

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  1. Oded Galor & Joseph Zeira, 2013. "Income Distribution and Macroeconomics," Working Papers 2013-12, Brown University, Department of Economics.
  2. Galor, Oded, 1996. "Convergence? Inferences from Theoretical Models," Economic Journal, Royal Economic Society, vol. 106(437), pages 1056-69, July.
  3. Danny Quah, 1996. "Twin peaks : growth and convergence in models of distribution dynamics," LSE Research Online Documents on Economics 2278, London School of Economics and Political Science, LSE Library.
  4. Robert J. Barro, 1995. "Inflation and Economic Growth," NBER Working Papers 5326, National Bureau of Economic Research, Inc.
  5. T. W. Swan, 1956. "ECONOMIC GROWTH and CAPITAL ACCUMULATION," The Economic Record, The Economic Society of Australia, vol. 32(2), pages 334-361, November.
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