IDEAS home Printed from
   My bibliography  Save this paper

A Two-Sector Growth Model with an Intermediate Product



    (University of Western Ontario)


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

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    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.
    Full references (including those not matched with items on IDEAS)

    More about this item


    two-sector growth model; intermediate products; capital/labour ratio; existence; stability; long-run equilibrium;

    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


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:qed:dpaper:185. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bahman Kashi). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.