Dynamics, Economic Growth, and International Trade

Abstract

While the endogenous growth theory has claimed success in modeling various factors of growth and providing analysis on sustainable growth of economies, most of the growth models in published work are for closed economies. These models are deemed to be inadequate for economic analysis because trade, which is often regarded as the engine of growth, has been neglected. The theory of international trade, on the other hand, is characterized by models that are mainly static. While the interest in the dynamics of trade has been growing, work in this area is still scarce. The success of the newly industrialized economies that have been adopting trade-oriented policies suggests how limited present trade theory is in explaining and analyzing the growth of these economies. The work collected here serves to bridge the old growth theory and growth theory; merge growth and trade theory; suggest new analysis and techniques of economic growth; and provide analysis of new issues related to growth and trade.