The structural properties of steady state are well understood for multisector models, but the comparative dynamics of long-run growth are much less developed. By exploiting duality theory, this paper obtains conclusions about these effects for a small, internationally-trading economy. Arbitrary...

A large country is able to affect its trading partners' accumulation of capital, and so it can alter future market conditions. Capital movements can be regulated by perfectly discriminatory policy to maximize the welfare of the large country by exploiting this link. This policy implies that...