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This paper studies the properties of a dynamic Heckscher-Ohlin model — a combination of a static two-good, two-factor Heckscher-Ohlin trade model and a two-sector growth model — with infinitely-lived consumers when borrowing and lending is not permitted. We obtain two main results. First, even if factor prices are equalized, countries that only differ in their initial endowments of capital per worker may converge or diverge in income levels over time, depending on the elasticity of substitution between traded goods. This result differs sharply from the convergence results obtained in closed-economy growth models. Second, for general constant-elasticity of substitution production functions, factor price equalization at a given period of time does not imply factor price equalization in future periods