Advanced Search
MyIDEAS: Login

Growth and Trade: The North Can Lose

Contents:

Author Info

  • Spilimbergo, Antonio

Abstract

Several models of growth and trade conclude that a country grows more when trading with a less developed country. This article shows that this conclusion depends crucially on the assuming homothetic preferences and/or having just two goods with respect to learning-by-doing. The article presents a model where the more advanced country (North) can be worse off after trading with a less developed country (South) because the demand pattern of the South is biased toward Northern products with less learning-by-doing potential. Trade can worsen the welfare if the South is large with respect to the North and/or the preference for low-technology goods is high; necessary conditions are that the preferences are nonhomotheticity and that the North exports at least two types of goods. In this context, the article studies the welfare of North and South, separating the static from the dynamic gains from trade. Copyright 2000 by Kluwer Academic Publishers

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://journals.kluweronline.com/issn/1381-4338/contents
File Function: link to full text
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Springer in its journal Journal of Economic Growth.

Volume (Year): 5 (2000)
Issue (Month): 2 (June)
Pages: 131-46

as in new window
Handle: RePEc:kap:jecgro:v:5:y:2000:i:2:p:131-46

Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=102931

Related research

Keywords:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Kamei, Keita & Sasaki, Hiroaki, 2014. "Is Agricultural Productivity Growth Good for Industrialization? Infrastructures and the Welfare Maximizing Tax Rate," MPRA Paper 53606, University Library of Munich, Germany.
  2. Leonid V. Azarnert, 2014. "Agricultural Exports, Tariffs and Growth," CESifo Working Paper Series 4583, CESifo Group Munich.
  3. Vivek B. Arora & Athanasios Vamvakidis, 2004. "How Much Do Trading Partners Matter for Economic Growth?," IMF Working Papers 04/26, International Monetary Fund.
  4. Isabelle Bensidoun & Guillaume Gaulier & Deniz Ünal-Kesenci, 2001. "The Nature of Specialization Matters for Growth: an Empirical Investigation," Working Papers 2001-13, CEPII research center.
  5. Daniel Sakyi & Jose Villaverde & Adolfo Maza & Krishna Reddy Chittedieonardo, 2012. "Trade Openness, Growth and Development: Evidence from Heterogeneous Panel Cointegration Analysis for Middle-Income Countries," REVISTA CUADERNOS DE ECONOMÍA, UN - RCE - CID.
  6. Antonio Spilimbergo & Ernesto Stein, 1998. "The Welfare Implications of Trading Blocs among Countries with Different Endowments," NBER Chapters, in: The Regionalization of the World Economy, pages 121-152 National Bureau of Economic Research, Inc.
  7. Keita, Kamei, 2011. "Industrialization and technological progress with many countries under a non-homothetic preference," MPRA Paper 31186, University Library of Munich, Germany.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:kap:jecgro:v:5:y:2000:i:2:p:131-46. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F. Baum).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.