search query: @indexterm time preference / total: 10
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| Author: | Fukao, K. Hamada, K. |
| Title: | International trade and investment under different rates on time preference |
| Journal: | Journal of the Japanese and International Economies
1994 : MAR, VOL. 8:1, p. 22-52 |
| Index terms: | INTERNATIONAL TRADE INVESTMENT TIME PREFERENCE |
| Language: | eng |
| Abstract: | This paper attempts to integrate the theory of trade with that of capital movements and to study the two-country world where each nation has a different rate of time preference. It resolves the indeterminacy problem intrinsic in the Heckscher-Ohlin model where trade and factor movements coexist by assuming that capital movements are infinitesimally more costly than trade in goods. Under certain assumptions, one can dichotomize the behavior of asset accumulation from the dynamic pattern of trade specialization. |
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