6533b86cfe1ef96bd12c80f3
RESEARCH PRODUCT
From stationary state to endogenous growth: International trade in the mathematical formulation of the Ricardian system
Neri SalvadoriRodolfo Signorinosubject
MacroeconomicsEconomics and Econometrics060106 history of social sciencesmedia_common.quotation_subjectWageContext (language use)International tradeInternational tradeRicardo Pasinetti international trade Ricardian growth model endogenous growth small open economy.Endogenous growth; International trade; Pasinetti; Ricardian growth model; Ricardo; Small open economy; Economics and EconometricsRicardian growth modelOrder (exchange)0502 economics and businessEconomics0601 history and archaeologySmall open economy050207 economicsSettore SECS-P/01 - Economia PoliticaClosed economyPasinettimedia_commonRicardoEndogenous growth theorybusiness.industryEconomic sector05 social sciences06 humanities and the artsEndogenous growthSettore SECS-P/04 - Storia Del Pensiero EconomicoBounded functionbusinessStationary statedescription
In his 1814–15 correspondence with Malthus and in his Essay on Profits, Ricardo championed the free importation of wage goods as a highly effective growth-enhancing policy. In order to capture this aspect in the mathematical formulation of the Ricardian system first introduced by Pasinetti in 1960 in the context of a closed economy, we produce a variant of that model where the economy is a small open one. We show that this economy is characterised by endogenous growth since the growth rate is bounded from below and we locate two thresholds concerning the allocation of labour among the two sectors of the economy and the pattern of international trade.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2015-04-01 |