The international trade as the sole engine of growth for an economy
Álvarez-Albelo, Carmen D. (Universidad de La Laguna)
Manresa, Antonio, 1954- (Universitat de Barcelona)
Pigem i Vigo, Mònica (Universitat de Barcelona)

Imprint:	Xarxa de Referència en Economia Aplicada (XREAP) 2009
Description:	29 p.
Abstract:	Can international trade act as the sole engine of growth for an economy? If yes, what are the mechanisms through which trade operates in transmitting permanent growth? This paper answers these questions with two simple two-country models, in which only one country enjoys sustained growth in autarky. The models differ in the assumptions on technical change, which is either labour- or capital-augmenting. In both cases, the stagnant economy imports growth by trading. In the first model, growth is transmitted because of permanent increases in the trade volume. In the alternative framework, the stagnant economy imports sustained growth because its terms of trade permanently improve.
Rights:	Aquest document està subjecte a una llicència d'ús Creative Commons. Es permet la reproducció total o parcial i la comunicació pública de l'obra, sempre que no sigui amb finalitats comercials, i sempre que es reconegui l'autoria de l'obra original. No es permet la creació d'obres derivades.
Language:	Anglès
Series:	Xarxa de Referència en Economia Aplicada (XREAP). Documents de treball de la Xarxa de Referència en Economia Aplicada (XREAP)
Series:	XREAP ; 2009-6
Document:	Working paper
Subject:	International trade ; Stagnant economies ; Growth transmission ; Mechanisms of transmission

29 p, 125.0 KB

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Research literature > Working papers