Population growth rates determine trade advantages, but not always welfare gains.
The article explores how differences in population growth rates can impact long-term economic outcomes and trade between countries. By analyzing a model with two sectors and factors, the researchers found that population growth rate disparities can lead to comparative advantages in trade, similar to the Heckscher-Ohlin model. However, contrary to static models, free trade may not always result in mutual welfare gains in dynamic settings with changing populations.