Trade, Convergence and Overtaking

Journal of International Economics, Vol. 46, No. 1, pp. 167-182, October, 1998

Posted: 7 Apr 2011

See all articles by Andrew Mountford

Andrew Mountford

Royal Holloway, University of London

Date Written: 1998

Abstract

This paper shows the importance of a model's dynamic structure for international trade theory. It shows how, by adding a simple dynamic structure to the standard convex 2×2×2 Heckscher–Ohlin model, the long run implications of international trade can be the reverse of the static ones. It also shows how trade can cause the steady state per capita income in the world economy to rise or fall, how trade can allow one country to catch up and overtake the steady state income of another country and how trade can cause conditional convergence.

Keywords: International Trade, Convergence, Growth

JEL Classification: O40, F11, F43

Suggested Citation

Mountford, Andrew, Trade, Convergence and Overtaking (1998). Journal of International Economics, Vol. 46, No. 1, pp. 167-182, October, 1998, Available at SSRN: https://ssrn.com/abstract=1800593

Andrew Mountford (Contact Author)

Royal Holloway, University of London ( email )

Royal Holloway, University of London
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Surrey TW20 0EX
United Kingdom
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HOME PAGE: http://personal.rhul.ac.uk/uhte/023/

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