Resumen
This study deals with dynamic relationships between global growth, trade, economicstructural change, and government?s debts. Government debts are seldom theoretically modelledin the literature of global economic growth theory. We introduce governments? debts andendogenous public good supplies into a general dynamic equilibrium growth model withmultiple countries and free trades between countries. The model is developed by integrating theSolow-Uzawa growth model, the Oniki?Uzawa trade model, and Diamond?s growth model withgovernment?s debt within a comprehensive framework. The model synthesizes these well-knowneconomic models with Zhang?s utility function to determine household behavior. It is built forany number of national economies. Each national economy consists of one tradable, one nontradableand one public sector. The model describes a dynamic interdependence between wealthaccumulation, and division of labor, governments? debts, national debts, and wealth and capitaldistribution under perfect competition. We demonstrate that the dynamics of the J -countryworld economy can be described by 2J differential equations. We simulate the model,demonstrating the existence of an equilibrium point, and showing instability of the equilibriumpoint. We also demonstrate how changes in some parameters affect short-run global economicdevelopment and the equilibrium point. Our comparative dynamic analyses provided someimportant insights into interactions between global economic growth, resource distributions,economic structures, and governments? debts.