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Factor endowment, impatience and trade patterns in a small open economy of endogenous growth

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  • Klaus Waelde

    (University of Kiel, Kiel, Germany)

Abstract

The prediction of trade patterns is usually based on physical factor abundance. In a context of endogenous growth, however, physical factor richness does not always predict trade patterns in a reliable way. In a world where countries differ only in their factor endowment trade patterns can easily be such that a physically capital rich country exports the labour intensive good. Further, if the consumers' time preference rates are allowed to vary between countries, they influence trade patterns, too, which then do not reflect physical factor abundance for fairly general conditions.

Suggested Citation

  • Klaus Waelde, 1994. "Factor endowment, impatience and trade patterns in a small open economy of endogenous growth," International Trade 9403004, University Library of Munich, Germany, revised 06 Apr 1994.
    • Handle: RePEc:wpa:wuwpit:9403004
    Note: 19 pages, single spaced, 3 figures, PostScript, replacement (now 11 inches length, same contents)
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • F1 - International Economics - - Trade
    • F2 - International Economics - - International Factor Movements and International Business

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