International Transmission of Government Spending, Monopolistic Competition and North-South Trade
AbstractThis paper utilises a North-South general equilibrium model where South exports an intermediate good to North in exchange for differentiated goods. The model is used to examine international transmission of government spending and its welfare implications. It is shown that an increase in government spending in North (South) can increase (decrease) the number of differentiated goods produced, thereby decreasing (increasing) the degree of monopoly power in North. Furthermore an increase in government spending in South can decrease the welfare North, but the impact of an increase in government spending in North the welfare of South cannot be unambiguously determined. [F11, H41]
Download InfoIf 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.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal International Economic Journal.
Volume (Year): 11 (1997)
Issue (Month): 4 ()
Contact details of provider:
Web page: http://www.tandfonline.com/RIEJ20
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Michael Devereux, 1988. "Non-traded Goods and the International Transmission of Fiscal Policy," Canadian Journal of Economics, Canadian Economics Association, vol. 21(2), pages 265-78, May.
- Kemp, Murray C. & Ohyama, Michihiro, 1978. "On the sharing of trade gains by resource-poor and resource-rich countries," Journal of International Economics, Elsevier, vol. 8(1), pages 93-115, February.
- Krugman, Paul R, 1981. "Intraindustry Specialization and the Gains from Trade," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 959-73, October.
- Steven N. Durlauf & Robert W. Staiger, 1988.
"Compositional Effects of Government Spending in a Two-Country Two-SectorProduction Model,"
NBER Working Papers
2543, National Bureau of Economic Research, Inc.
- Durlauf, Steven N. & Staiger, Robert W., 1990. "Compositional effects of government spending in a two-country, two-sector production model," Journal of International Economics, Elsevier, vol. 28(3-4), pages 333-347, May.
- Svensson, Lars E O, 1987. " International Fiscal Policy Transmission," Scandinavian Journal of Economics, Wiley Blackwell, vol. 89(3), pages 305-34.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.