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• W1985697866 abstract "There are two main reasons why it is interesting to extend international trade theory to vintage capital models. (1) If one is concerned with the causes and effects of trade in actual machines, then it seems natural to use the vintage approach. This applies in particular to trade in secondhand machines, an issue which has been much discussed in the literature on development (see [9] section 1), where only in vintage models can one hope to capture the essential points. (2) Almost the entire theoretical literature on international trade assumes capital malleability, and much of it assumes a two-sector economy. If the results of this theorizing are attributable to the specific nature of the models used, then it is clear that one should not attach much significance to them. If, by contrast, it can be shown that the principal features of trade theory carry over to. alternative models of capitalist production, then the confidence with which we apply the theory to the real world should be strengthened. The vintage models discussed in this paper should be distinguished from the models of Bardhan [1], [2] and Petith [7]. Bardhan's model is a two-sector model with fixed proportions vintage production functions and no trade in used machines. It turns out to resemble very closely the two-sector model with differentiable production functions. Petith's model has no trade at all in capital goods: the vintage technology is used solely as an illustration of the effects of joint production. By contrast, it is of the essence of the models I discuss here that they are vintage models, there are no restrictions on trade, and, indeed, in dealing only with one-sector models my aim is to focus purely on the issues raised by trade across vintages. It must also be noted that my concern is with the effects of trade on growth. There is a considerable literature on the effects of growth on trade. (See Hanson [6] for a survey of this literature, and an attempt to consider both sets of effects together.) Since the models here have only one consumption good, nothing may be said on such important questions as the effects of capital accumulation on the relative prices of, say, primary and manufactured products." @default.
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• W1985697866 date "1976-02-01" @default.
• W1985697866 modified "2023-10-18" @default.
• W1985697866 title "International Trade Theory in Vintage Models" @default.
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• W1985697866 doi "https://doi.org/10.2307/2296604" @default.
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