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Agricultural Development vs. Industrialization: Effects of Trade

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Author Info
Cristina Echevarria

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Abstract

The question addressed in this paper is how trade affects the composition of the national product, thus having an effect on the overall growth rate of the economy. The paper uses a dynamic general equilibrium model with three different consumption goods: agriculture, manufactures, and services (nontradable). The main finding is that if the country produces only primaries and services, the effects of trade on growth are mixed. Trade helps growth at low levels of income but at higher levels trade slows the country's growth. If the country produces manufactures and services, the effect of trade on growth is not substantial.

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Publisher Info
Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

Volume (Year): 28 (1995)
Issue (Month): 3 (August)
Pages: 631-47
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Handle: RePEc:cje:issued:v:28:y:1995:i:3:p:631-47

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  1. Gollin, Douglas & Parente, Stephen L. & Rogerson, Richard, 2000. "Farm Work, Home Work And International Productivity Differences," 2000 Annual meeting, July 30-August 2, Tampa, FL 21797, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
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  2. E. Cristina Echevarria, 2008. "International trade and the sectoral composition of production," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 11(1), pages 192-206, January. [Downloadable!] (restricted)
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This page was last updated on 2009-11-25.

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