Dynamics, Economic Growth, and International Trade (Studies in International Economics)

Combines two areas in economics: the theory of economic growth and the theory of international trade | While endogenous growth theory has claimed success in modeling various factors of growth and providing an analysis of sustainable economic growth, most of the growth models in published work are for closed economies. The omission of international trade, which is often regarded as the engine of growth, greatly reduces their usefulness. The theory of international trade, on the other hand, is characterized by models that are mainly static. While interest in the dynamics of trade has been growing, there is still little work in this area. The success of the newly industrialized economies that have adopted trade-oriented policies suggests how limited present trade theory is in explaining and analyzing the growth of these economies. The work collected here serves to bridge the "old" growth theory and "new" growth theory; merge growth and trade theory; suggest new analysis and techniques of economic growth; and provide analysis of new issues related to growth and trade. The first chapter surveys endogenous growth and international trade and critically reviews the endogenous growth theory with a unified framework, covering the work on both closed and open economies. Three chapters examine the dynamics of some basic trade models; two chapters focus on growth and trade with endogenous accumulation of human and public capital; two chapters on economic growth, technological progress, and international trade; and two chapters on growth and international factor movements. Contributors include Eric W. Bond, Theo S. Eicher, Rolf Färe, Oded Galor, Shawna Grosskopf, Bjarne S. Jensen, Pantelis Kalaitzidakis, Shoukang Lin, Ngo Van Long, Kazuo Nishimura, Koji Shimomura, Kathleen Trask, Stephen J. Turnovsky, Pham Hoang Van, Henry Wan, Jr., Chunyan Wang, and Kar-yiu Wong. Bjarne S. Jensen is Associate Professor of Economics, Copenhagen Business School. Kar-yiu Wong is Professor of Economics, University of Washington, Seattle. While The Endogenous Growth Theory Has Claimed Success In Modeling Various Factors Of Growth And Providing Analysis On Sustainable Growth Of Economies, Most Of The Growth Models In Published Work Are For Closed Economies. These Models Are Deemed To Be Inadequate For Economic Analysis Because Trade, Which Is Often Regarded As The Engine Of Growth, Has Been Neglected. The Theory Of International Trade, On The Other Hand, Is Characterized By Models That Are Mainly Static. While The Interest In The Dynamics Of Trade Has Been Growing, Work In This Area Is Still Scarce. The Success Of The Newly Industrialized Economies That Have Been Adopting Trade-oriented Policies Suggests How Limited Present Trade Theory Is In Explaining And Analyzing The Growth Of These Economies. The Work Collected Here Serves To Bridge The Old Growth Theory And New Growth Theory; Merge Growth And Trade Theory; Suggest New Analysis And Techniques Of Economic Growth; And Provide Analysis Of New Issues Related To Growth And Trade. Introduction / Bjarne S. Jensen And Kar-yiu Wong -- Endogenous Growth And International Trade: A Survey / Ngo Van Long And Kar-yiu Wong -- General Equilibrium Dynamics Of Basic Trade Models For Growing Economies / Bjarne S. Jensen And Chunyan Wang -- Endogenous Growth, Trade, And Specialization Under Variable Returns To Scale: The Case Of A Small Open Economy / Ngo Van Long, Kazuo Nishimura, And Koji Shimomura -- Dynamic Foundations For The Factor Endowment Model Of International Trade / Oded Galor And Shoukang Lin -- Public And Private Capital In An Endogenously Growing Open Economy / Stephen J. Turnovsky -- Trade And Growth With Endogenous Human And Physical Capital Accumulation / Eric W. Bond And Kathleen Trask -- Efficiency And Productivity In Rich And Poor Countries / Rolf Färe And Shawna Grosskopf -- Interpreting East Asian Growth / Pham Hoang Van And Henry Y. Wan, Jr. -- Endogenous Growth And International Labor Migration: The Case Of A Small, Emigration Economy / Kar-yiu Wong -- The Human Capital Dimension To Foreign Direct Investment: Training, Adverse Selection, And Firm Location / Theo S. Eicher And Pantelis Kalaitzidakis. Edited By Bjarne S. Jensen And Kar-yiu Wong. Includes Bibliographical References. While endogenous growth theory has claimed success in modeling various factors of growth and providing an analysis of sustainable economic growth, most of the growth models in published work are for closed economies. The omission of international trade, which is often regarded as the engine of growth, greatly reduces their usefulness. The theory of international trade, on the other hand, is characterized by models that are mainly static. While interest in the dynamics of trade has been growing, there is still little work in this area. The success of the newly industrialized economies that have adopted trade-oriented policies suggests how limited present trade theory is in explaining and analyzing the growth of these economies.The work collected here serves to bridge the "old" growth theory and "new" growth theory; merge growth and trade theory; suggest new analysis and techniques of economic growth; and provide analysis of new issues related to growth and trade. The first chapter surveys endogenous growth and international trade and critically reviews the endogenous growth theory with a unified framework, covering the work on both dosed and open economies. Three chapters examine the dynamics of some basic trade models; two chapters focus on growth and trade with endogenous accumulation of human and public capital two chapters on economic growth, technological progress, and international trade; and two chapters on growth and international factor movements.Contributors include Eric W. Bond, Theo S. Eicher, Roll Fare, Oded Galor, Shawna Grosskopf, Bjarne S. Jensen, Pantelis Kalaitzidakis, Shoukang Lin, Ngo Van Long, Kazuo Nishimura, Koji Shimomura, Kathleen Trask, Stephen J.Turnovsky, Pham Hoang Van, Henry Wan, Jr., Chunyah I Wang, and Kar-yiu Wong. Contents......Page 8 List of Figures......Page 10 List of Tables......Page 13 Contributors......Page 14 Part I. Introduction......Page 16 1. Introduction / Bjarne S. Jensen and Kar-yiu Wong......Page 18 2. Endogenous Growth and International Trade: A Survey / Ngo Van Long and Kar-yiu Wong......Page 26 Part II. Dynamics of Basic Trade Models......Page 90 3. General Equilibrium Dynamics of Basic Trade Models for Growing Economies / Bjarne S. Jensen and Chunyan Wang......Page 92 4. Endogenous Growth, Trade, and Specialization under Variable Returns to Scale: The Case of a Small Open Economy / Ngo Van Long, Kazuo Nishimura, and Koji Shimomura......Page 142 5. Dynamic Foundations for the Factor Endowment Model of International Trade / Oded Galor and Shoukang Lin......Page 166 Part III. Growth and Trade with Endogenous Accumulation of Human or Public Capital......Page 184 6. Public and Private Capital in an Endogenously Growing Open Economy / Stephen J. Turnovsky......Page 186 7. Trade and Growth with Endogenous Human and Physical Capital Accumulation / Eric W. Bond and Kathleen Trask......Page 226 Part IV. Economic Growth, Technological Progress, and International Trade......Page 256 8. Efficiency and Productivity in Rich and Poor Countries / Rolf Färe and Shawna Grosskopf......Page 258 9. Interpreting East Asian Growth / Pham Hoang Van and Henry Y. Wan, Jr.......Page 280 Part V. Dynamics, Economic Growth, and International Factor Movement......Page 302 10. Endogenous Growth and International Labor Migration: The Case of a Small, Emigration Economy / Kar-yiu Wong......Page 304 11. The Human Capital Dimension to Foreign Direct Investment: Training, Adverse Selection, and Firm Location / Theo S. Eicher and Pantelis Kalaitzidakis......Page 352 Contents 8 List of Figures 10 List of Tables 13 Contributors 14 Part I. Introduction 16 1. Introduction / Bjarne S. Jensen and Kar-yiu Wong 18 2. Endogenous Growth and International Trade: A Survey / Ngo Van Long and Kar-yiu Wong 26 Part II. Dynamics of Basic Trade Models 90 3. General Equilibrium Dynamics of Basic Trade Models for Growing Economies / Bjarne S. Jensen and Chunyan Wang 92 4. Endogenous Growth, Trade, and Specialization under Variable Returns to Scale: The Case of a Small Open Economy / Ngo Van Long, Kazuo Nishimura, and Koji Shimomura 142 5. Dynamic Foundations for the Factor Endowment Model of International Trade / Oded Galor and Shoukang Lin 166 Part III. Growth and Trade with Endogenous Accumulation of Human or Public Capital 184 6. Public and Private Capital in an Endogenously Growing Open Economy / Stephen J. Turnovsky 186 7. Trade and Growth with Endogenous Human and Physical Capital Accumulation / Eric W. Bond and Kathleen Trask 226 Part IV. Economic Growth, Technological Progress, and International Trade 256 8. Efficiency and Productivity in Rich and Poor Countries / Rolf Färe and Shawna Grosskopf 258 9. Interpreting East Asian Growth / Pham Hoang Van and Henry Y. Wan, Jr. 280 Part V. Dynamics, Economic Growth, and International Factor Movement 302 10. Endogenous Growth and International Labor Migration: The Case of a Small, Emigration Economy / Kar-yiu Wong 304 11. The Human Capital Dimension to Foreign Direct Investment: Training, Adverse Selection, and Firm Location / Theo S. Eicher and Pantelis Kalaitzidakis 352 9780472109180