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Factor Accumulation And The Terms Of Trade: Applications To The Asian Financial Crisis

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  • E. Kwan Choi
  • Hamid Beladi

Abstract

. This paper investigates the effects of population growth and capital accumulation on trade and welfare. In the absence of a terms of trade effect, an population increase reduces the standard of living and causes a reduction in welfare. An increase in population causes deterioration in the terms of trade of a labour abundant country, whereas capital accumulation improves them, regardless of the source of growth. Moreover, an increase in the South's population is immiserizing.

Suggested Citation

  • E. Kwan Choi & Hamid Beladi, 2006. "Factor Accumulation And The Terms Of Trade: Applications To The Asian Financial Crisis," Pacific Economic Review, Wiley Blackwell, vol. 11(3), pages 383-394, October.
  • Handle: RePEc:bla:pacecr:v:11:y:2006:i:3:p:383-394
    DOI: 10.1111/j.1468-0106.2006.00322.x
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    Cited by:

    1. Shachmurove, Yochanan & Spiegel, Uriel, 2013. "Sustainable effects of technological progress and trade liberalization," Economic Modelling, Elsevier, vol. 33(C), pages 956-964.
    2. Yochanan Shachmurove & Uriel Spiegel, 2013. "Are All Technological Improvements Beneficial? Absolutely Not," PIER Working Paper Archive 13-027, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.

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