Capital accumulation shapes global growth rates and trade balances.
The article explores how the rate of capital accumulation and productivity growth affect the growth rate of imports and exports. The researchers argue that besides exports, capital accumulation and productivity growth also play a role in determining the trade balance. The impact of capital accumulation on growth can be positive, neutral, or negative depending on import requirements. Additionally, differences in international growth rates are not only due to specialization patterns but also to variations in rates of capital accumulation.