IDEAS home Printed from https://ideas.repec.org/p/qed/dpaper/185.html
   My bibliography  Save this paper

A Two-Sector Growth Model with an Intermediate Product

Author

Listed:
  • CHUN-YAN KUO

    (University of Western Ontario)

Abstract

This paper is a comment note on the article by R. N. Batra and R. Singh for their strong conditions required for the existence of the short-run equilibrium and the long-run equilibrium in a two-sector growth model with an intermediate product. Our paper shows that the factor intensities of final goods sectors in the gross and the relative gross shares of primary factors are crucial in determining the properties of the model. All the conditions for stability are in fact much weaker than those derived by Batra and Singh due to their neglect of drawing a distinction between the net and the gross capital/labour ratios of a final good.

Suggested Citation

  • Chun-Yan Kuo, 1974. "A Two-Sector Growth Model with an Intermediate Product," Development Discussion Papers 1974-06, JDI Executive Programs.
    • Handle: RePEc:qed:dpaper:185
    as

    Download full text from publisher

    File URL: https://cri-world.com/publications/qed_dp_185.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Batra, Raveendra N & Casas, Francisco R, 1973. "Intermediate Products and the Pure Theory of International Trade: A Neo-Heckscher-Ohlin Framework," American Economic Review, American Economic Association, vol. 63(3), pages 297-311, June.
    2. Raveendra N. Batra, 1973. "Pure Intermediate Products," Palgrave Macmillan Books, in: Studies in the Pure Theory of International Trade, chapter 8, pages 180-201, Palgrave Macmillan.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Thijs ten Raa & Pierre Mohnen, 2009. "The Location of Comparative Advantages on the Basis of Fundamentals Only," World Scientific Book Chapters, in: Input–Output Economics: Theory And Applications Featuring Asian Economies, chapter 23, pages 425-446, World Scientific Publishing Co. Pte. Ltd..
    2. Stephen Devadoss & Wongun Song, 2003. "Oligopsonistic Intermediate Input and Patterns of Trade," International Economic Journal, Taylor & Francis Journals, vol. 17(3), pages 77-97.
    3. Anu Kovarikova Arro, 2005. "Globalization, Increasing Returns in Component Production, and the Pattern of Trade," CERGE-EI Working Papers wp265, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    4. Baldwin, Richard & Robert-Nicoud, Frédéric, 2007. "Offshoring: General Equilibrium Effects on Wages, Production and Trade," CEPR Discussion Papers 6218, C.E.P.R. Discussion Papers.
    5. Vandana Chandra & Ralph El-Chami & Jeffrey Fischer, 1991. "Development policies in the presence of unemployment and non-traded intermediate goods," Journal of Economics, Springer, vol. 54(1), pages 1-19, February.
    6. Nobuaki Yamashita, 2010. "International Fragmentation of Production," Books, Edward Elgar Publishing, number 13615.
    7. François Rocherieux, 1981. "Sur la théorie des modèles inter-industriels : quelques remarques appliquées à l'analyse de l'emploi et du commerce international," Revue Économique, Programme National Persée, vol. 32(5), pages 887-922.
    8. Rebecca Freeman & Richard Baldwin, 2022. "Risks and Global Supply Chains: What We Know and What We Need to Know," Annual Review of Economics, Annual Reviews, vol. 14(1), pages 153-180, August.
    9. Richard Baldwin & Javier Lopez-Gonzalez, 2015. "Supply-chain Trade: A Portrait of Global Patterns and Several Testable Hypotheses," The World Economy, Wiley Blackwell, vol. 38(11), pages 1682-1721, November.
    10. Baldwin, Richard & Robert-Nicoud, Frédéric, 2014. "Trade-in-goods and trade-in-tasks: An integrating framework," Journal of International Economics, Elsevier, vol. 92(1), pages 51-62.
    11. Richard Baldwin, 2014. "WTO 2.0: Governance of 21st century trade," The Review of International Organizations, Springer, vol. 9(2), pages 261-283, June.
    12. Joël Hellier, 2013. "The North-South HOS Model, Inequality and Globalization," Palgrave Macmillan Books, in: Joël Hellier & Nathalie Chusseau (ed.), Growing Income Inequalities, chapter 4, pages 107-146, Palgrave Macmillan.
    13. Marcela Sabaté, 2009. "Vertical Specialization and Nonstationarities in International Trade Series," The Institute for International Integration Studies Discussion Paper Series iiisdp309, IIIS.
    14. Ravi Batra & Hamid Beladi, 2010. "Outsourcing and the Heckscher–Ohlin Model," Review of International Economics, Wiley Blackwell, vol. 18(2), pages 277-288, May.
    15. Lionel Fontagné & Michaël Freudenberg & Deniz Ünal, 1995. "Régionalisation et échanges de biens intermédiaires," Working Papers 1995-11, CEPII research center.
    16. Gérard Destane de Bernis, 1975. "Les limites de l'analyse en termes d'équilibre économique général," Revue Économique, Programme National Persée, vol. 26(6), pages 884-930.
    17. Fuller, Frank & Hayes, Dermot J., 2011. "Exchange Rate Impacts on the Composition of Agricultural Trade," ISU General Staff Papers 201101010800001562, Iowa State University, Department of Economics.
    18. Lionel Fontagné, 1991. "Spécialisation et protection en présence de biens intermédiaires échangés," Revue Économique, Programme National Persée, vol. 42(1), pages 51-74.
    19. Fuller, Frank Harland, 1996. "The location of marginal production for value-added and intermediate goods: optimal policies and trade volumes," ISU General Staff Papers 1996010108000012147, Iowa State University, Department of Economics.
    20. Kazuhiro Testu, 2006. "Tourism Promotion and Regional Development in Low-income Developing Countries," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 45(3), pages 417-424.

    More about this item

    Keywords

    two-sector growth model; intermediate products; capital/labour ratio; existence; stability; long-run equilibrium;
    All these keywords.

    JEL classification:

    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:qed:dpaper:185. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mark Babcock (email available below). General contact details of provider: https://edirc.repec.org/data/qedquca.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.