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Towards an ecological technology for global growth in a North-South trade model

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  • F. Cabo
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    Abstract

    In a world of rapid and cheap communication, where countries are not isolated, ideas and information spread quickly across international borders. Technological progress, leading to more efficient productive processes, in terms of the required amount of natural resources, seems to be the key to overcoming the conflict between environmental concerns and economic growth. This paper investigates the relationship between natural resources and sustainable economic growth in a North-South trade model. We assume that a process of capital transfer from North to South is performed in two different scenarios depending on the effect of this transfer upon the Southern economy. Within a game theory framework, we characterize the optimal paths of global economic growth which respects the sustainable use of natural resources.

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    File URL: http://www.tandfonline.com/doi/abs/10.1080/09638190110093165
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    Bibliographic Info

    Article provided by Taylor & Francis Journals in its journal The Journal of International Trade & Economic Development.

    Volume (Year): 11 (2001)
    Issue (Month): 1 ()
    Pages: 15-41

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    Handle: RePEc:taf:jitecd:v:11:y:2001:i:1:p:15-41

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    Web page: http://www.tandfonline.com/RJTE20

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    Related research

    Keywords: North-SOUTH Trade; Endogenous Growth; Renewable Resources; Sustainable Economic Growth; Differential Games;

    References

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    1. James A. Brander & M. Scott Taylor, 1996. "Open Access Renewable Resources: Trade and Trade Policy in a Two-CountryModel," NBER Working Papers 5474, National Bureau of Economic Research, Inc.
    2. Benhabib, Jess & Radner, Roy, 1992. "The Joint Exploitation of a Productive Asset: A Game-Theoretic Approach," Economic Theory, Springer, vol. 2(2), pages 155-90, April.
    3. Smulders, J.A. & Gradus, R.H.J.M., 1993. "The trade-off between environmental care and long-term growth: Pollution in three proto-type growth models," Open Access publications from Tilburg University urn:nbn:nl:ui:12-153405, Tilburg University.
    4. Hoel, Michael, 1997. "Coordination of environmental policy for transboundary environmental problems?," Journal of Public Economics, Elsevier, vol. 66(2), pages 199-224, November.
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    12. Musu, Ignazio, 1996. "Transitional Dynamics to Optimal Sustainable Growth," CEPR Discussion Papers 1282, C.E.P.R. Discussion Papers.
    13. CHANDER, Parkash & TULKENS, Henry, . "Theoretical foundations of negotiations and cost sharing in transfrontier pollution problems," CORE Discussion Papers RP -983, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    14. Ihori, Toshihiro, 1996. "International public goods and contribution productivity differentials," Journal of Public Economics, Elsevier, vol. 61(1), pages 139-154, July.
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    17. Prescott, Edward C & Boyd, John H, 1987. "Dynamic Coalitions: Engines of Growth," American Economic Review, American Economic Association, vol. 77(2), pages 63-67, May.
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