Ch经济增长和贸易.pptVIP

Ch6. International trade，economic growth  factor mobility 6.3. Growth of factors 6.3.1 growth of factors and change of trade welfare The supply of a factor grows over time. It affect international trade and welfare of trading countries. 6.4. Effects of technological change on trade 6.4.1 J.R. Hicks’s categrious of technical progress The theory of wages (London: Macmillan,1932) Neutral technical progress save L and K with same ratio in production. There will be no substitution of L and K in the process of production. Hence, the relative price of factors (w/r) does not change with neutral technical progress. What happen is just that: after neutral technical progress, it is need fewer L and K for the original quantity of production. Labor-saving technical progress refer to that the increasing of the productivity of capital factor is greater than that of productivity of labor. There is the substitution of labor by capital. If the ratio of (w/r) does not change, the ratio of K/L will increase. Capital-saving technical progress increases of productivity of L proportionately more than the productivity of K. L is substituted for K (K/L falls) at unchanged w/r. 6.4.2 Tech. Progress and PPF all kinds of Tech. Progress can change the shape of a country’s PPF. The type, the speed of, and at which goods that Tech. progress emerged decides the move and shape of new PPF. 6.5. Growth, trade, and welfare: the case of large country A large country (H-Country): If growth of the abundant factor, (for example: labor) cause the change of international market price (change of term of trade. TOT. ) neutral CE Results: causes an ultra-protrade PE, total effect on trade is that this large country demands more imports and supplies more exports at the current relative prices. H- country alter its “offer” at that new relative prices on the market. Growth may result in declining well-being. 6.6. International capital movements 6.6.1 International capital movements As