International Trade and Economic Growth: The Classical Ruminations in the Endogenous Growth Framework

Abstract

This paper assesses the rumination of classical trade theories in the endogenous growth framework. There are two key verdicts: first, between the endogenous growth models that place emphasis on the development of human capital along with the productivity doctrine of Smith (1776). These similitude frameworks stress the importance of improving global trade on the verge of economic growth. Building up one's human capital. Second, models of endogenous growth place a strong emphasis on the relationship between endogenous technological advancement and the Comparative advantage theory of Heckscher (1919), Ohlin (1933), and Ricardo (1817, 1933). These similitude frameworks argue that the allocation effect can be used to explain how international trade contributes to the process of economic growth.