Trade Capital, Human Capital and Economic Development

摘要: This paper examines a dynamic, Ricardian model of small, open economy in which trade growth occurs endogenously as the capital stock rises. Trade grows firms devote resources to investment knowledge or relationships reduces future costs. Because diminishing returns impact on costs, steady state is constant. The an increasing function productivity and country's distance international market decreasing its tariff rate. On transitional path state, rises at rate falls. share GDP stock, this implies conditional convergence shares. External spillovers are also considered, results suggest that policies such missions subsidize may be welfare improving. If human positive, shown negative capital. means relationship between output negative. As economies converge can rise fall. Therefore, for path, but ambiguous.