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Free Trade and Economic Growth

Kuo-Hsing Kuo, Cheng-Te Lee and Chen Fang

Australian Economic Papers, 2014, vol. 53, issue 1-2, 69-76

Abstract: type="main">

This paper extends the Das (2005) model to set up an equilibrium growth model with heterogeneous labor to analyse the growth effects after trade openness. We prove that if the terms of trade large enough before opening trade, then it is more likely that opening trade would accelerate economic growth for a small open country, vice versa.

Date: 2014
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