; ; ; "ActiveFedora::Aggregation::ListSource" . a , ; "Trade, Growth, and Convergence in a Dynamic Heckscher-Ohlin Model"; ; "batchuser@example.com"; "Bajona, Claustre", "Kehoe, Timothy Jerome, 1953-"; "Federal Reserve Bank of Minneapolis"; "Convergence", "International trade", "Heckscher–Ohlin", "Economic growth"; "F11 - Neoclassical Models of Trade", "F43 - Economic Growth of Open Economies", "O15 - Economic Development: Human Resources; Human Development; Income Distribution; Migration", "O41 - One, Two, and Multisector Growth Models"; "In models in which convergence in income levels across closed countries is driven by faster accumulation of a productive factor in the poorer countries, opening these countries to trade can stop convergence and even cause divergence. We make this point using a dynamic Heckscher-Ohlin model — a combination of a static two-good, two-factor Heckscher-Ohlin trade model and a two-sector growth model — with infinitely lived consumers where international borrowing and lending are not permitted. We obtain two main results: First, countries that differ only in their initial endowments of capital per worker may converge or diverge in income levels over time, depending on the elasticity of substitution between traded goods. Divergence can occur for parameter values that would imply convergence in a world of closed economies and vice versa. Second, factor price equalization in a given period does not imply factor price equalization in future periods."^^; "2008-10"; "2019-06-21T15:11:02.343630396+00:00"^^; "https://doi.org/10.21034/sr.378"; ; "https://creativecommons.org/licenses/by-nc/4.0/"; "Thu Nov 7 21:46:24 2019"; "https://creativecommons.org/licenses/by-nc/4.0/"; "Research Paper"; "394", "50"; "Staff report (Federal Reserve Bank of Minneapolis. Research Department)"; "378"; "Heckscher–Ohlin", "Convergence", "Economic growth", "International trade"; ; ; ; ; "Federal Reserve Bank of Minneapolis. Research Department"; "Published in: _Review of Economic Dynamics_ (Vol. 13, No. 3, July 2010, pp. 487-513) https://doi.org/10.1016/j.red.2010.05.002."^^; ; "Publication" . ; .