Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/3902
Authors: 
Becker, Daniel Thomas
Gundlach, Erich
Year of Publication: 
2006
Series/Report no.: 
Kieler Arbeitspapiere 1300
Abstract: 
We reconsider the effects of long-run economic growth on relative factor prices across cones of specialization. We model economic growth as exogenous technical change. Allowing for capital biased technical change with a sector bias and for endogenous commodity prices, we find that economic growth may increase or decrease factor price differences across cones. For a neutral demand side and capital biased growth in the most capital intensive sector, we find that economic growth encourages less factor price diversity across cones.
Subjects: 
Factor price equality
Economic growth
Two cone trade model
JEL: 
F11
O40
Document Type: 
Working Paper

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