GROWTH PATHS DEVELOPED BY INTERNATIONAL-TRADE IN LEONTIEF-TYPE DYNAMIC-MODELS

The present paper investigates some growth paths produced by the free market in certain dynamic input-output models. It is suggested that a developing economy, which will typically undergo structural changes, o r a developed economy, which will make decisions on technological spec ialisation by strongly reducible technology carried out through intern ational trade or on parameter values of terms of trade, may be fruitfu lly studied as several (in)dependent sub-economies, each with its own balanced growth path and optimal growth path with the turnpike propert y. For the test of these approaches, Japan's economy in the 1960s is s imulated by the use of its input-output tables which may also contribu te to the study of economic history of Japan. The main lessons from th ese investigations, however, are the suggested methods which may under lie the development of a wide international trade for a smoothly growi ng world economy.