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activity allocation analysis approach assumed balanced growth capital stock capital-output ratio classical saving function Cobb-Douglas coefficients commodity comparative advantage consumption cost countries demand determined discussed domestic dynamic Economic Growth effects efficiency empirical equal equations equilibrium exports factor prices factor supply factor-intensity factors of production first-best formulation free trade given Harrod Heckscher-Ohlin Heckscher-Ohlin theorem Hence Hicks-neutral hypothesis imports income distribution income per head increase industries input instance International Trade investment Kaldor labour productivity Leontief linear programming machines marginal product measure neo-classical Neumann output path pattern perfect competition population growth possible price ratios problem production function progress function proportion proposition pure theory rate of growth rate of profit regional economics REStud result returns to scale Ricardian Samuelson second-best assumptions sectors Solow solution steady growth steady-state tariff terms of trade theorem tion trade policy trade theory United variable warranted rate welfare