Capital accumulation and dynamic gains from trade

Measurable Dynamic Gains from Trade

Implications of Intellectual Property Rights for Dynamic Gains from Trade

A simple intellectual property rights (IPRs) framework is introduced into a dynamic quality ladder model of technological diffusion between innovating firms in one country and imitating firms in another country. The presence of technological spillovers and feedback effects between firms in the two countries demonstrates that, even when steady state growth increases, transition costs sometimes d...

TRADE, DEVELOPMENT AND CONVERGING GROWTH RATES Dynamic Gains From Trade Reconsidered

Within an endogenous growth framework, we examine dynamic gains from trade for parametrically distinct countries. In the absence of international spillovers or factor mobility, previous endogenous growth models generally imply that trade in goods must amplify differences in (1) factor endowments, (2) rates of technical change and (3) economic growth. Even the dynamic HOS model suggests that tra...

Factor Accumulation and Trade: Dynamic Comparative Advantage with Endogenous Human Capital

This paper develops a two country endogenous growth model with accumulation of both physical and human capital. We establish the existence of two country balanced growth equilibria with physical and human capital growing at the same rate in which a static and dynamic version of the Heckscher-Ohlin hypothesis hold true. We also show the existence of unbalanced growth equilibria in which the stat...

Volatility, Insurance, and the Gains from Trade∗

By reducing the negative correlation between local prices and productivity shocks, trade liberalization changes the volatility of returns. In the context of agriculture in developing countries—where production is risky, producers are risk averse, and insurance markets are incomplete—this change in volatility may have large welfare effects. In this paper, we empirically, analytically, and quanti...