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Intermediate Products and the Two sector Growth Model in an Open economy

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  • CHUN-YAN KUO

    (Department of Regional Economic Expansion, Government of Canada)

Abstract

The paper investigates whether the presence of the intermediate good plays a significant role in the growing economy. It also discusses the patterns of international specialization in relation to relative factor endowments. The paper finds that the factor intensities of final goods sectors in both the gross and the net sense are equally important in determining the properties of the model.

Suggested Citation

  • Chun-Yan Kuo, 1977. "Intermediate Products and the Two sector Growth Model in an Open economy," Development Discussion Papers 1977-08, JDI Executive Programs.
    • Handle: RePEc:qed:dpaper:184
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    References listed on IDEAS

    as
    1. Batra, Raveendra N & Casas, Francisco R, 1973. "Intermediate Products and the Pure Theory of International Trade: A Neo-Heckscher-Ohlin Framework," American Economic Review, American Economic Association, vol. 63(3), pages 297-311, June.
    2. 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.
    3. Khang, Chulsoon, 1969. "A dynamic model of trade between the final and the intermediate products," Journal of Economic Theory, Elsevier, vol. 1(4), pages 416-437, December.
    4. Jaroslav Vanek, 1963. "Variable Factor Proportions and Interindustry Flows in the Theory of International Trade," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 77(1), pages 129-142.
    5. P. K. Bardhan, 1966. "On Factor Accumulation and the Pattern of International Specialisation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 33(1), pages 39-44.
    6. Khang, Chulsoon, 1971. "Equilibrium Growth in the International Economy: The Case of Unequal Natural Rates of Growth," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 12(2), pages 239-249, June.
    7. Raveendra N. Batra & Prasanta K. Pattanaik, 1971. "Economic Growth, Intermediate Products, and the Terms of Trade," Canadian Journal of Economics, Canadian Economics Association, vol. 4(2), pages 225-237, May.
    8. P. K. Bardhan, 1965. "Equilibrium Growth in the International Economy," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 79(3), pages 455-464.
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    Cited by:

    1. Accolley, Delali, 2016. "Physical and Human Capital over the Business Cycle," MPRA Paper 71017, University Library of Munich, Germany.

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    More about this item

    Keywords

    two-sector growth model; intermediate products; open economy; capital/labour ratio; stability; long-run equilibrium;
    All these keywords.

    JEL classification:

    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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