Intertemporal trade between developed and less developed countries

Abstract

Ricardian, ECLAC-UN (Cepal) and Neo-Schumpeterian schools of Economic Thought assume that there are productivity differentials across economies. This paper intends to analyze the power of intertemporal trade neoclassical model to explain the less development countries' intertemporal balance of payments solvency. Conclusions highlight the limits of the neoclassical model in explaining the intertemporal trade when productivity differentials across countries are assumed.

intertemporal trade; productivity; (non) development economies