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Investment In A Two-Sector Dependent Economy

Author

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  • Stephen J. Turnovsky

    (University of Washington, Seattle)

  • Partha Sen

    (Delhi School of Economics)

Abstract

This paper analyzes capital accumulation in a dependent economy model. When the n011traded good is used for investment we obtain a saddle-point structure irrespective of sectoral capital intensities. But relative capital intensities determine how the real exchange rate moves overtime. Some comparative dynamic exercises are performed with different capital intensity assumptions.

Suggested Citation

  • Stephen J. Turnovsky & Partha Sen, 1995. "Investment In A Two-Sector Dependent Economy," Working papers 31, Centre for Development Economics, Delhi School of Economics.
    • Handle: RePEc:cde:cdewps:31
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