This article develops a two-country endogenous growth model with accumulation of both physical and human capital. We establish the existence of two-country balanced growth equilibria with physical and human capital in which a static and dynamic version of the Heckscher-Ohlin (HO) hypothesis hold true. We also show the existence of unbalanced growth equilibria in which the static and dynamic HO hypotheses can be violated. The multiplicity of paths with international trade emerge as a result of the intertemporal no-arbitrage condition when factor prices are equalized across countries.

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We utilize a random-matching model to examine the relationships between market frictions and international trade. In our setting, an individual may choose to search abroad where she may have a cost advantage, but is less likely to meet potential trading partners, owing to higher market frictions. Interestingly, we find that international trade may be associated with lower welfare than autarky. We show how this is due to price distortions resulting from bargaining when there are opportunities for exchange across countries. JEL classification F10, C78, D83Echanges internationaux de´centralise´s. Les auteurs utilisent un mode`le d'arrimage ale´a-toire pour examiner les relations entre les couˆts de transaction dans le marche´et le commerce international. On postule qu'un individu peut choisir de chercher des partenaires commerciaux dans d'autres pays ou`il peut avoir un avantage de couˆts mais qu'il est moins susceptible de rencontrer de tels partenaires a`cause des couˆts de transaction. Il appert que le commerce international peut eˆtre associe´a`un niveau de bien-eˆtre plus bas que ce que ge´ne´rerait l'autarcie. On montre comment cela est attribuable aux distorsions de prix qui de´coulent du marchandage quand il y a des opportunite´s d'e´change entre pays.