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1、InternationalEconomicsTenthEditionEconomicGrowthandInternationalTradeDominickSalvatoreJohnWiley&Sons,Inc.Salvatore:InternationalEconomics,10thEdition©2010JohnWiley&Sons,Inc.CHAPTERSEVEN7Inthischapter:IntroductionGrowthofFactorsofProductionTechnicalProgressGrowthandTrade:TheSmall-CountryCase
2、GrowthandTrade:TheLarge-CountryCaseGrowth,ChangeinTastes,andTradeinBothNationsSalvatore:InternationalEconomics,10thEdition©2010JohnWiley&Sons,Inc.IntroductionMosttradetheorydiscussedsofarisstaticinnature.However,factorendowments,technologyandtastescanchangeovertime,changinganation’scomparat
3、iveadvantage.Changesinfactorendowments,technologyandtastesaffectanation’sproductionfrontier,offercurve,volumeandtermsoftrade,andgainsfromtrade.Salvatore:InternationalEconomics,10thEdition©2010JohnWiley&Sons,Inc.GrowthofFactorsofProductionIncreasesinlabor(L)andcapital(K)shifttheproductionfro
4、ntieroutward.Typeanddegreeofshiftdependonrateofgrowth:BalancedgrowthiswhenLandKgrowatthesamerate,shiftingfrontieroutevenlyinalldirections.Slopeoneachfrontierareequalwherecutbyarayfromtheorigin.Salvatore:InternationalEconomics,10thEdition©2010JohnWiley&Sons,Inc.GrowthofFactorsofProductionInc
5、reasesinlabor(L)andcapital(K)shifttheproductionfrontieroutward.Typeanddegreeofshiftdependonrateofgrowth:IfonlyLgrows,outputofbothcommoditiesincreases.OutputoftheL-intensivecommoditywillincreasefasterthanthatoftheK-intensivecommodity(theoppositeistrueifonlyKgrows).Salvatore:InternationalEcon
6、omics,10thEdition©2010JohnWiley&Sons,Inc.FIGURE7-1GrowthofLaborandCapitalOverTime.Salvatore:InternationalEconomics,10thEdition©2010JohnWiley&Sons,Inc.TheRybczynskiTheoremAtconstantcommodityprices,anincreaseintheendowmentofonefactorwillincreasebyagreaterproportiontheoutputofthecommodityinten
7、siveinthatfactorandwillreducetheoutputoftheothercommodity.Salvatore:InternationalEconomics,10thEdition©2010JohnWiley&Sons,Inc.GrowthofFactorsofProductionTheRybczynskiTheoremForexample,ifonlyLgrowsinNation1,theoutputofcommodityX(theL-intensivecommodity)ex
