Utilizing an endogenous open growth model with learning-by-doing and knowledge spillovers, we analyze the relation between the long-run economic growth and the balance of trade of a country whose imports consist of capital goods. In addition to this we distinguish the model into the market economy one and the planned growth one. The former has no social planner who controls the activities of the capital accumulation and the consumption of the economy.
We derive some results. First, in the long-run equilibrium point, the planned growth one has higher levels of production, capital stock and consumption than those of market economy. But two models have the same growth rate of the variables and the rate is independent of propensity to export and import ratio of capital accumulation. Second, we point out that the balance of trade of market economy has a stronger tendency towards export surplus than planned growth one along the optimal path and also at the equilibrium point. Third, we show that, for both models, the trade balance always becomes surplus whenever the propensity to export has larger value than the import ratio of the capital accumulatios. But, even if in the opposite case, we present a possibility for the trade balance to turn surplus along the optimal growth path.