Capital accumulation and international trade

• 成果类型: Article; Proceedings Paper
• 署名作者: Alvarez, Fernando
• 署名单位: University of Chicago; National Bureau of Economic Research
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2017.09.005
• 发表日期: 2017
• 页码: 1-18
• 关键词: Capital accumulation; international trade; DYNAMICS; CONVERGENCE; TARIFFS

摘要

Capital accumulation is introduced into a version of Eaton-Kortum model of international trade, imposing period by period balanced trade. The effects of tariff changes on world steady states and transition dynamics are studied. A calibrated version of the model is used to assess the short- and long-run gains from a world-wide elimination of trade tariffs. The determinants and importance of convergence in world-wide capital as well as convergence on the relative capitals and incomes are analyzed. Positive and normative comparisons with an analogous static model are conducted, as well as comparisons steady state welfare comparisons vs full dynamic gains. (C) 2017 Published by Elsevier B.V.