Convergence in a Dynamic Heckscher–Ohlin Model with Land
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Title: | Convergence in a Dynamic Heckscher–Ohlin Model with Land |
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Authors: | Guillo, Maria Dolores | Pérez Sebastián, Fidel |
Research Group/s: | Grupo de Estudios de Paz y Desarrollo (GEPYD) | Análisis Económico |
Center, Department or Service: | Universidad de Alicante. Departamento de Métodos Cuantitativos y Teoría Económica | Universidad de Alicante. Departamento de Fundamentos del Análisis Económico |
Keywords: | Convergence | Heckscher–Ohlin model | Land |
Knowledge Area: | Fundamentos del Análisis Económico |
Issue Date: | Aug-2015 |
Publisher: | John Wiley & Sons |
Citation: | Review of Development Economics. 2015, 19(3): 725-734. doi:10.1111/rode.12158 |
Abstract: | Convergence among nations that share the same preferences and technologies is a key result of the closed-economy neoclassical growth framework that has received substantial support in the data. However, Heckscher–Ohlin versions of the two-sector neoclassical growth model predict that nations that differ in their capital–labor ratios may not converge to the same steady state, even if they are identical in all other aspects. This is a puzzling result that warns us about potential dangers of international trade. In this paper we show that when land, an input in fixed supply, is introduced into the model, international trade in goods no longer limits the capacity of poor nations to catch up with the advanced world. |
Sponsor: | The authors are grateful to the Spanish Ministry of Science and Innovation (ECO2012-36719) and the Generalitat Valenciana (PROMETEO/2013/037) for financial support. |
URI: | http://hdl.handle.net/10045/51788 |
ISSN: | 1363-6669 (Print) | 1467-9361 (Online) |
DOI: | 10.1111/rode.12158 |
Language: | eng |
Type: | info:eu-repo/semantics/article |
Rights: | © 2015 John Wiley & Sons Ltd |
Peer Review: | si |
Publisher version: | http://dx.doi.org/10.1111/rode.12158 |
Appears in Collections: | INV - GEPYD - Artículos de Revistas INV - Análisis Económico - Artículos de Revistas INV - DMCTE - Artículos de Revistas |
Files in This Item:
File | Description | Size | Format | |
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2015_Guillo_Perez_RDE_final.pdf | Versión final (acceso restringido) | 104,45 kB | Adobe PDF | Open Request a copy |
2015_Guillo_Perez_RDE_preprint.pdf | Preprint (acceso abierto) | 137,92 kB | Adobe PDF | Open Preview |
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