ABSTRACT
Having proceeded thus far mainly within a comparative static framework, we shall now take growth considerations explicitly into account. We shall first develop a simplified Harrod-Domar model of economic growth in the context of an open economy. This model, which is purely formal in character, builds upon our earlier discussion in Chapters 6 and 7. We shall then present a simplified neoclassical growth model with a foreign sector, and compare thereafter the results of this model with the Harrod-Domar one.
