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幻灯片1INTERNATIONALECONOMICSLecture10幻灯片2MAINCONTENTS----economicgrowthandinternationaltradeFactorgrowthandproductionpossibilityfrontierTechnicalprogressandthenation”sPPFGrowthandtrade:thesmall-countrycaseGrowthandtrade:thelarge-countrycaseImmiserizinggrowth幻灯片3Factorgrowthandproductionpossibilityfrontier(economicgrowth)Anincreaseintheendowmentofoneormorethanonefactorssuchaslaborandcapitalovertimecausesthenation’sproductionfrontiertoshiftoutward.thetypeanddegreeoftheshiftdependontheratelaborandcapitalgrows.Iflaborandcapitalgrowatthesamerate,thenation’sproductionfrontierwillshiftoutevenlyinalldirectionsattherateoffactorgrowth.Thisisthebalancedgrowth.幻灯片4Ifonlyonefactorendowment(.e.g.L)grows,theoutputofbothcommoditiesgrow.Buttheoutputofcommodityintensiveinthegrowingfactorinitsproductiongrowsfasterthanthatcommoditynotintensiveinthefactorinitsproduction.Notethatwhenonlyonefactorofproductiondoubles,themaximumoutputOfcommodityintensivein幻灯片5thegrowingfactordosenotdouble,forthecommoditytodouble,bothorallfactorsusedinproductionmustdouble.NotethatIfthetotalpopulationgrowsatthesamerateastheeconomicgrowthorfactorgrowth,realpercapitaincomeandthewelfareofthenationtendtoremainunchanged.幻灯片6Ifonlylaborgrows(orLgrowsproportionatelymorethanK),K/LwillfallandsowilltheproductivityofL,thereturnstoL,andrealpercapitaincome.If,ontheotherhand,onlytheendowmentofKgrows(orKgrowsproportionatelymorethanL），K/LwillriseandsowilltheproductivityofL,thereturnstoL,andrealpercapitaincome.幻灯片7Technicalprogressandthenation”sPPF(economicgrowth)Severalempiricalstudieshaveindicatedthatmostoftheincreaseinrealpercapitaincomeinindustrialnationsisduetotechnicalprogressandmuchlesstocapitalaccumulation.Technicalprogressisusuallyclassifiedintoneutral,laborsaving,orcapitalsavingtechnicalprogress.幻灯片8NeutraltechnicalprogressincreasestheproductivityofLandKinthesameproportion,sothatK/Lremainsthesameaftertheneutraltechnicalprogressasitwasbeforeatunchangedrelativefactorprices(w/r)
