GROWTH AND INTERDEPENDENCE

Two of the most interesting facts of the postwar international growth experience are (1) the conditional convergence finding that, after con trolling for measures of education and government policies, poor count ries tend to grow faster than rich ones; and (2) a small group of expo rt-oriented economies in East Asia have been able to grow at rates tha t are so high that they defy historical comparisons. This paper shows that it is possible to explain these facts by combining a weak form of the factor-price-equalization theorem of international trade with the Ramsey model of economic growth.