Trade and the Neoclassical Growth Model
Trade and the Neoclassical Growth Model
- 세종대학교 경제통합연구소
- Journal of Economic Integration
- 제18권 제1호
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2003.031 - 16 (16 pages)
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The model developed in this paper expands upon the traditional neoclassical exogenous growth model by facilitating a long-run growth analysis of the impact of openness to trade within a multi-country framework. Openness affects growth by impacting the extent of knowledge spillovers from abroad. This feature effectively converts the traditional closed-economy exogenous growth model into a multi-country, open-economy endogenous growth model. Nevertheless, the conditional convergence and identical growth predictions of the neoclassical model are preserved here with the extent of trade now playing a role in determining the relative heights of the countries` parallel output paths.
Ⅰ. Introduction
Ⅱ. The Model
Ⅲ. Equilibrium
Ⅳ. Examples
Ⅴ. Conclusion
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