Factor Price Equality and Biased Technical Change in a Two-Cone Trade Model
Daniel Becker () and
Erich Gundlach ()
Review of Development Economics, 2007, vol. 11, issue 4, 685-698
We reconsider the effects of long-run economic growth on relative factor prices across cones of specialization. We model economic growth as exogenous technical change. Allowing for capital biased technical change with a sector bias and for endogenous commodity prices, we find that economic growth may increase or decrease factor price differences across cones. For a neutral demand side and capital biased growth in the most capital intensive sector, we find that economic growth encourages less factor price diversity across cones. Copyright © 2007 The Authors; Journal compilation © 2007 Blackwell Publishing Ltd.
References: View complete reference list from CitEc
Citations View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
http://www.blackwell-synergy.com/doi/abs/10.1111/j.1467-9361.2007.00421.x link to full text (text/html)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bla:rdevec:v:11:y:2007:i:4:p:685-698
Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1363-6669
Access Statistics for this article
Review of Development Economics is currently edited by E. Kwan Choi
More articles in Review of Development Economics from Wiley Blackwell
Series data maintained by Wiley-Blackwell Digital Licensing ().