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فهرست مقالات

Capital Accumulation and Convergence in a Small Open Economy

نویسنده:

علمی-پژوهشی/ISC (10 صفحه - از 15 تا 24)

کلیدواژه ها :

convergence ،Land ،Heckscher-Ohlin Model ،Specific Factors Model ،Capital Accumulation

کلید واژه های ماشینی : Heckscher ، Capital Accumulation Convergence ، In Specific Factors ، Accumulation Convergence Small Open Economy ، Specific Factors Model ، Ohlin Model ، Dynamic Specific Factors Models ، Economic Growth Convergence Closed Economy ، Specific Factor ، Factor Models International Trade

Outward-oriented economies seem to grow faster than inward-looking ones. Does the literature on convergence have anything to say on this? In the dynamic Heckscher-Ohlin-Samuelson model, with factor-price equalization, there is no convergence of incomes. This is because with identical preferences and return to capital, irrespective of initial levels the growth rates of consumption are the same. In the Specific Factors model, there is factor price equalization in the long run, but incomes depend on endowments of non-accumulable factors. Different specifications for the intersectorally mobile factors have different implications for development (as well as convergence).

خلاصه ماشینی:

"This economy will continue to accumulate capital until it reaches the lowest capital-labor ratio of the world economy’s diversification cone (assuming that the world economy is in steady-state) (see Chen (1992), Ventura (1997), Atkeson and Kehoe (2000) and Bajona and Kehoe (2010) for further discussion). In the following section, we introduce the open economy and discuss the H-O-S model, where factor price equalization does not imply convergence of incomes. ) we can write (13a) and (13b) in terms of the intensive magnitudes (ki is the capital-labor ratio in sector i, i=C,M): (17a) (17b) Incomplete specialization, from equations (17a) and (17b) implies factor-price-equalization (the Samuelson part of the H-O-S). If, on the other hand, the small open economy lies outside the cone of diversification (in a development context, with too little capital), then it specializes in the production of one (labor-intensive) good. e. (19a) Even if the world economy is not in steady state, the Euler equations ensure that growth rates of consumption of the SOE is equal to the world economy (where the superscript W refers to the world economy): (19b) As Chen (1992) first showed, that this result in a dynamic optimal growth framework results in hysteresis—i. To analyze the model, we first define the GDP function (24) We have from this (since only capital is mobile): (25) Thus, given the capital stock in each economy and the relative price, capital moves across the sectors till its marginal revenue product is equalized."


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