A New Ricardian Model of Trade, Growth and Inequality

Sugata Marjit ()
Additional contact information
Sugata Marjit: Indian Institute of Foreign Trade, Kolkata, India

No 2048, Working Papers from Indian Institute of Foreign Trade

Abstract: The classical Wage Fund (Capital or Credit) framework is integrated with the simplest text-book version of the Ricardian model of comparative advantage, generating a model that replicates important features of the neo-classical production theory involving capital and labour without neo-classical assumptions. Interestingly the growth story of the model seems to be observationally equivalent to the Solow (1956) model of steady state growth. It can easily and effectively reflect on critical contemporary issues without the ammunitions of a more complex neo-classical system. Trade pampers inequality all across the globe independent of trade patterns. It is likely to increase growth rate but that rate declines over time. Technological progress without physical capital accumulation magnifies inequality in or out of steady state, generating a Picketty (2013) like situation. Financial crisis in terms of credit shortage hurts workers but benefits capitalists etc.

JEL-codes: B4 F1 O4 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
ftp://203.190.248.10/RePEc/ift/workingpapers/EC-20-48.pdf First version, 2020 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Failed to list directory /RePEc/ift/workingpapers and could not get modification time for EC-20-48.pdf [Opening ASCII mode data connection.; ]

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:ift:wpaper:2048

Access Statistics for this paper

More papers in Working Papers from Indian Institute of Foreign Trade Contact information at EDIRC.
Bibliographic data for series maintained by S. Balasubramanian ().