Taub, Bart; Zhao, Rui - In: Journal of Macroeconomics 30 (2008) 4, pp. 1335-1346
In the standard neoclassical model, when two countries with disparate capital levels open to trade, the capital-rich country exports capital to the capital-poor country. This hastens growth in the poor country and generates income for the rich country, to the benefit of both. Real countries do...