ABSTRACT
Orthodox mainstream economic models suggest that the one-time expansion of international trade and the dynamic process of economic growth are inherently similar: both processes involve and increase in the value of economic production. In terms of the Heckscher-Ohlin (HO) model, economic growth can be illustrated as an outward shift in the production possibilities frontier (PPF), illustrated in Figure 6.1 as the shift from PPF
economy to reach production points on a higher social indierence curve, orthodox neoclassical analysis concludes that economic growth directly raises human welfare.
