GOLD VALUE WITH TRADABLE AND NON-TRADABLE GOODS IN A MULTI-COUNTRY GROWTH MODEL WITH FREE TRADE
The purpose of this study is to examine gold price in global markets. We introduce gold into a general dynamic equilibrium growth model with multiple countries and free trades between countries. The model is developed by integrating the Solow growth model, the Uzawa two-sector growth model, and the...
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| Format: | Article |
| Language: | English |
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Faculty of Economics, University of Tuzla
2016-05-01
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| Series: | Economic Review |
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| Online Access: | http://er.ef.untz.ba/index.php/er/article/view/113 |
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| author | Wei-Bin Zhang |
| author_facet | Wei-Bin Zhang |
| author_sort | Wei-Bin Zhang |
| collection | DOAJ |
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The purpose of this study is to examine gold price in global markets. We introduce gold into a general dynamic equilibrium growth model with multiple countries and free trades between countries. The model is developed by integrating the Solow growth model, the Uzawa two-sector growth model, and the Oniki–Uzawa trade model within a comprehensive framework. The model is built for any number of national economies and each national economy consists of one tradable and one non-tradable sectors. National economies are different in population, technologies, propensities to save, propensity to use gold, and propensities to consume. We show that the dynamics of the J -country world economy can be described by J differential equations. We simulate the model to demonstrate the existence of an equilibrium point, motion of the dynamic system, and (local) stability of the equilibrium point. We also demonstrate how changes in the propensities to use, the populations, the propensities to save, and the total factor productivities affect global economic development
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| format | Article |
| id | doaj-art-90c54299835847c9af9b6bdee74e0ab2 |
| institution | Kabale University |
| issn | 1512-8962 2303-680X |
| language | English |
| publishDate | 2016-05-01 |
| publisher | Faculty of Economics, University of Tuzla |
| record_format | Article |
| series | Economic Review |
| spelling | doaj-art-90c54299835847c9af9b6bdee74e0ab22025-02-10T00:31:14ZengFaculty of Economics, University of TuzlaEconomic Review1512-89622303-680X2016-05-01141GOLD VALUE WITH TRADABLE AND NON-TRADABLE GOODS IN A MULTI-COUNTRY GROWTH MODEL WITH FREE TRADEWei-Bin Zhang0Ritsumeikan Asia Pacific University The purpose of this study is to examine gold price in global markets. We introduce gold into a general dynamic equilibrium growth model with multiple countries and free trades between countries. The model is developed by integrating the Solow growth model, the Uzawa two-sector growth model, and the Oniki–Uzawa trade model within a comprehensive framework. The model is built for any number of national economies and each national economy consists of one tradable and one non-tradable sectors. National economies are different in population, technologies, propensities to save, propensity to use gold, and propensities to consume. We show that the dynamics of the J -country world economy can be described by J differential equations. We simulate the model to demonstrate the existence of an equilibrium point, motion of the dynamic system, and (local) stability of the equilibrium point. We also demonstrate how changes in the propensities to use, the populations, the propensities to save, and the total factor productivities affect global economic development http://er.ef.untz.ba/index.php/er/article/view/113trade patterngold valuetradable and non-tradableeconomic growth |
| spellingShingle | Wei-Bin Zhang GOLD VALUE WITH TRADABLE AND NON-TRADABLE GOODS IN A MULTI-COUNTRY GROWTH MODEL WITH FREE TRADE Economic Review trade pattern gold value tradable and non-tradable economic growth |
| title | GOLD VALUE WITH TRADABLE AND NON-TRADABLE GOODS IN A MULTI-COUNTRY GROWTH MODEL WITH FREE TRADE |
| title_full | GOLD VALUE WITH TRADABLE AND NON-TRADABLE GOODS IN A MULTI-COUNTRY GROWTH MODEL WITH FREE TRADE |
| title_fullStr | GOLD VALUE WITH TRADABLE AND NON-TRADABLE GOODS IN A MULTI-COUNTRY GROWTH MODEL WITH FREE TRADE |
| title_full_unstemmed | GOLD VALUE WITH TRADABLE AND NON-TRADABLE GOODS IN A MULTI-COUNTRY GROWTH MODEL WITH FREE TRADE |
| title_short | GOLD VALUE WITH TRADABLE AND NON-TRADABLE GOODS IN A MULTI-COUNTRY GROWTH MODEL WITH FREE TRADE |
| title_sort | gold value with tradable and non tradable goods in a multi country growth model with free trade |
| topic | trade pattern gold value tradable and non-tradable economic growth |
| url | http://er.ef.untz.ba/index.php/er/article/view/113 |
| work_keys_str_mv | AT weibinzhang goldvaluewithtradableandnontradablegoodsinamulticountrygrowthmodelwithfreetrade |