Notes on Factor Price Equality and Biased Technological Change in a Two-Cone Trade Model
Daniel Becker () and
Erich Gundlach ()
DEGIT Conference Papers from DEGIT, Dynamics, Economic Growth, and International Trade
We reconsider the effects of long run growth on relative factor prices across cones of specialization. We model economic growth as exogenous technological change. Allowing for capital biased technological change with a sector bias and for endogenous commodity prices, we find that economic growth may increase or decrease factor price differences across cones, depending on the size of the specific bias of technological change and on the specification of preferences. For a specific set of assumptions, we show that economic growth may encourage factor price equality across cones.
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:deg:conpap:c010_006
Access Statistics for this paper
More papers in DEGIT Conference Papers from DEGIT, Dynamics, Economic Growth, and International Trade Contact information at EDIRC.
Series data maintained by Jan Pedersen ().