A Factor Endowment Theory of Endogenous Growth and International Trade |
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| Authors: | Yunfang Hu Murray C. Kemp Koji Shimomura |
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| Affiliation: | Research Institute for Economics &Business Administration, Kobe University, Rokkodai, Nada, Kobe 657-8501, Japan. E-mail: .; Department of Economics, Macquarie University, Sydney, NSW 2109, Australia. E-mail: .; Research Institute for Economics &Business Administration, Kobe University, Rokkodai-cho, Nada-ku, Kobe 657-8501, Japan. Tel/Fax: 81-78-803-7002;E-mail: . |
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| Abstract: | This paper presents a dynamic general equilibrium model of multi‐country, two‐good and two‐factor, in which both long‐run growth and international trade patterns are examined. In each country, government expenditure on a public intermediate good plays a crucial role in the realization of persistent growth. It is shown that the long‐run pattern of international trade is determined in a Heckscher‐Ohlin manner. |
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