Appendix to Chapter 14

Abstract

If we consider the growth-trade relations in a dynamic context, the static equations of the basic neoclassical model treated in Chap. 19 must be supplemented by the following differential equations (a dot indicates the time derivative and the subscript i = 1, 2 refers to the countries)

$$\displaystyle{ \begin{array}{rlc} \mathop{L}\nolimits^{.}_{i}/L_{i}& = n_{i}, & \\ \mathop{K}\nolimits^{.}_{i}& = S_{i}, & \\ S_{i}& = s_{i}I_{iA} = A_{i,}^{D}&0 < s_{i} < 1. \end{array} }$$

(28.1)