My Main Research Interests Economic Growth and Development, Industrial Organization, International Trade. My Ph.D. Dissertation. Abstract Chapter 1.
Labor productivity varies from country to country.
Therefore, the value of time, or the income forgone during the time spent on consumption varies too. It is shown that there may be no trade between two countries even if their per capita capital stocks are different. It is also shown that the issues of gains from trade and the pattern of trade are equivalent when properly framed. In this model there are goods of different qualities. The poorer country exports the superior variety to the richer country because the richer country can afford the superior variety.