Publication

Jan 2007

This paper analyzes the Solow model in a cross-country context. The author predicts that international differences in steady state output per person are due to international differences in technology for a constant capital output ratio. He finds that this specification can summarize the data quite well and concludes that this reinterpretation of the cross-country Solow model provides an implication for empirical studies of international trade. Harrod-neutral technology differences as presumed by the Solow model can explain why countries have different factor intensities and may end up in different cones of specialization.

Download English (PDF, 26 pages, 156 KB)
Author Erich Gundlach
Series Kiel Institute Working Papers
Issue 1294
Publisher Kiel Institute for the World Economy
Copyright © 2007 Kiel Institute for the World Economy
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