ABSTRACT
The major issue of this chapter is to provide a Kaldor-Pasinetti model of a small open economy. In writing this chapter, I was also prompted to compare developments in a simple model such as that presented here, including the use of land, with a much more general model, excluding the use of land. The difference is startling: the dynamic gain from trade may be negative when land is used. Ricardo himself did not yet recognize this fact, probably on account of his Anglo-centric mindset. But as far as I know, this is not widely recognized even today. The chapter clarifies also the role of Ricardo as a deep-rooted endogenous growth theorist.
