- Guo, Guangzhen, Ruiguo Liu, and Zongye Huang, 2019, "Car on the Road: An Economic Growth Model of Road Infrastructure on Consumption and Economic Growth", Economic Research Journal (经济研究).
- Huang, Zongye, and Yu You, 2018, "How Does Capital Controls Spur Economic Growth?", World Economy.
- Huang, Zongye, and Yu You, 2018, "Agriculture Technology Adoption, and Structural Change", Economic Research Journal (经济研究).
- Huang, Zongye, 2017, "Structural Transformation under Trade Imbalances: the Case of the Postwar U.S.", Frontiers of Economics in China, 1(2).
- Yu You, Yoonbai Kim, and Zongye Huang, 2016, "Exchange Rate Flexibility and Current Account Adjustment: A Threshold VAR Analysis", Frontiers of Economics in China, 11(4).
- Yu You, and Zongye Huang, 2016, "Capital Controls on Debt Structure and Economic Growth", Journal of Financial Research (金融研究), 436, 46-62.
This paper explores the interaction between trade and growth. In particular, we assume that the information of advanced technology is embodied within high-quality capital goods, which are produced by developed economies. Thus, the international technology diffusion goes through the channel of trading high quality capital goods, which establishes a direct causal linkage from trade to growth. The capital import is subject to a balance of payment constraint, and must be financed by exports. We define and characterize two types of steady states and illustrate the interaction between the balance of payments constraint and the optimal capital import condition.
This paper illuminates the role played by agricultural modernization in structural change. As workers leave traditional agriculture sector to settle down in modern agriculture sector and non-agriculture sectors, demand for capital goods temporally increases. Since the majority of capital goods comes from the manufacturing sector, the manufacturing employment share would first rise, then decline and converge to a generalized balanced growth path defined by Kongsamut, Rebelo, and Xie (2001). Our model generates hump-shaped patterns for manufacturing employment share and investment rate without assuming unbalanced technology growth.