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A Two-Sector Growth Model with an Intermediate Product

Author

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  • CHUN-YAN KUO

    (University of Western Ontario)

Abstract

This paper is a comment note on the article by R. N. Batra and R. Singh for their strong conditions required for the existence of the short-run equilibrium and the long-run equilibrium in a two-sector growth model with an intermediate product. Our paper shows that the factor intensities of final goods sectors in the gross and the relative gross shares of primary factors are crucial in determining the properties of the model. All the conditions for stability are in fact much weaker than those derived by Batra and Singh due to their neglect of drawing a distinction between the net and the gross capital/labour ratios of a final good.

Suggested Citation

  • Chun-Yan Kuo, 1974. "A Two-Sector Growth Model with an Intermediate Product," Development Discussion Papers 1974-06, JDI Executive Programs.
    • Handle: RePEc:qed:dpaper:185
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    References listed on IDEAS

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    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. Raveendra N. Batra, 1973. "Pure Intermediate Products," Palgrave Macmillan Books, in: Studies in the Pure Theory of International Trade, chapter 8, pages 180-201, Palgrave Macmillan.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    two-sector growth model; intermediate products; capital/labour ratio; existence; 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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