Capital markets and dimension in neoclassical models of growth with trade

• 成果类型: Article
• 署名作者: Cremers, ET
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/S0022-1996(96)01462-6
• 发表日期: 1997
• 页码: 155-172
• 关键词: Heckscher-Ohlin; capital mobility; dimensionality; overlapping generations; integrated world economy

摘要

This paper explores the role of arbitrary assumptions regarding dimension and the tradeability of capital in neoclassical growth models. It is shown that international markets for physical and financial capital are required to reproduce the competitive world growth path only when the number of traded (non-capital) goods is less than the number of factors, provided that countries are diversified along their growth paths. Capital markets compensate for lacking consumption good markets in models with low dimension, thus reinforcing an earlier static argument that trade theory requires a sufficient number of markets, rather than particular dimensional attributes. (C) 1997 Elsevier Science B.V.