A Factor Endowment Theory of Endogenous Growth and International Trade

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<jats:title>Abstract</jats:title><jats:p>This paper presents a dynamic general equilibrium model of multi‐country, two‐good and two‐factor, in which both long‐run growth and international trade patterns are examined. In each country, government expenditure on a public intermediate good plays a crucial role in the realization of persistent growth. It is shown that the long‐run pattern of international trade is determined in a Heckscher‐Ohlin manner.</jats:p>

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