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Chapter 6
Growth and Trade
Economic Growth and International Trade
Main idea: Solve problems of the influence of
economic variation to international trade.
McGraw-Hill/Irwin © 2007 The McGraw-Hill Companies, Inc., All Rights Reserved.
Focus
This chapter has two major purposes:
First, it shows how the Heckscher-Ohlin
model (factor endowment changes) can be
used to analyze economic growth and its
impact on international trade.
Second, it examines additional aspects
such as technological progress, new
factors and their relationship to
international trade.
McGraw-Hill/Irwin © 2007 The McGraw-Hill Companies, Inc., All Rights Reserved.
Chapter Structure
1. Factor Changes and Economic Growth
要素增长型经济增长
1.1 Balanced Versus Biased Growth
1.2 Growth in Only One Factor--Rybczynski Effects
1.3 Factor Endowment Changes and Terms of Trade
2. Technology Changes and Economic Growth
技术增长型经济增长
2.1 Individual Products and the Product Cycle
2.2 Openness to Trade Affects Growth
McGraw-Hill/Irwin © 2007 The McGraw-Hill Companies, Inc., All Rights Reserved.
1. Factor Changes and Economic Growth
1.1 Balanced Versus Biased Growth
Growth in a country’s production
capabilities, whether from
endowment increases or technology
improvements, shifts the country’s
production-possibility curve outward.
As the PPC shifts out, we need to
know the effects on:
the general shape of the PPC
the specific production quantities for
the different pr
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