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Economic development in emerging Asian markets: implications for Europe

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  • Will Martin
  • Elena Ianchovichina
  • Betina Dimaranan

Abstract

The impacts of faster growth in China and India for Europe are analysed taking into account terms-of-trade effects, second-best welfare impacts and improvements in product quality and variety. More rapid growth in these giants could improve Europe's terms of trade, but second-best effects on energy markets could lower welfare unless these taxes are Pigovian. Whether growth arises from productivity or capital accumulation has important implications, with capital-driven growth involving higher energy and agricultural prices. When quality and variety growth are taken into account, the benefits to Europe are substantially greater. If agricultural protection in emerging Asia increases with growth, the impacts on Europe appear to be adverse but small. Oxford University Press and Foundation for the European Review of Agricultural Economics 2008; all rights reserved. For permissions, please email journals.permissions@oxfordjournals.org, Oxford University Press.

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Bibliographic Info

Article provided by Foundation for the European Review of Agricultural Economics in its journal European Review of Agricultural Economics.

Volume (Year): 35 (2008)
Issue (Month): 3 (September)
Pages: 303-330

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Handle: RePEc:oup:erevae:v:35:y:2008:i:3:p:303-330

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Cited by:
  1. Ianchovichina, Elena & Ivanic, Maros & Martin, Will, 2009. "Implications of the growth of China and India for the other Asian giant : Russia," Policy Research Working Paper Series 5075, The World Bank.
  2. Janne Niemi & Juha Honkatukia & Ville Kaitila & Markku Kotilainen, 2012. "Global trade and climate policy scenarios ? Impact on Finland," Working Papers 37, Government Institute for Economic Research Finland (VATT).

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