A Growth Theory Based on Walrasian General Equilibrium, Solow-Uzawa Growth, and Heckscher-Ohlin Trade Theories

Wei-Bin Zhang

Interdisciplinary Description of Complex Systems - scientific journal, 2018, vol. 16, issue 3-B, 452-464

Abstract: The purpose of this study is to analyse the role of preferences and technological differences between countries in determining dynamics of capital accumulation, wealth and income distribution within countries and between countries, and patterns of trade in a dynamic general equilibrium framework. The model is built by integrating Walrasian general equilibrium, neoclassical growth, and H O international trade theories. The model is built for any number of countries and each country is composed of three production sectors and heterogeneous households. The national growth mechanism is the same as that in neoclassical growth theory. Labour and capital distributions among sectors and among countries are determined under perfect competition and free trade. The model synthesizes the well-known H O and the Oniki-Uzawa trade models, Solow-Uzawa neoclassical growth theory, and Walrasian general equilibrium theory with Zhang's utility function. We simulated the model with three national economies and with two groups of households for each country. We identified the existence of equilibrium points and plot motion of the dynamic system. We also conducted a comparative dynamic analysis.

Keywords: trade pattern; H O model; Walrasian general equilibrium theory; neoclassical growth theory; income and wealth distribution (search for similar items in EconPapers)
JEL-codes: C53 C63 E47 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://indecs.eu/2018/indecs2018-pp452-464.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zna:indecs:v:16:y:2018:i:3-b:p:452-464

Access Statistics for this article

More articles in Interdisciplinary Description of Complex Systems - scientific journal from Croatian Interdisciplinary Society Provider Homepage: http://indecs.eu
Bibliographic data for series maintained by Josip Stepanic ().