IDEAS home Printed from https://ideas.repec.org/p/cde/cdewps/45.html
   My bibliography  Save this paper

Terms Of Trade And Welfare For A Developing Economy With An Imperfectly Competitive Sector

Author

Listed:
  • Partha Sen

    (Delhi School of Economics)

Abstract

The effect of terms of trade economy on the welfare of a small open economy is analyzed. It exports a homogeneous good and imports some brands of the differentiated good. It also produces some brands of the differentiated good which are not traded. A terms of trade deterioration causes resources to move to the non-traded, import-competing sector. The economy's income rises and the price index for the differentiated good falls, resulting in higher welfare. This accords well with the experience of developing economies to East and South-east Asia.

Suggested Citation

  • Partha Sen, 1997. "Terms Of Trade And Welfare For A Developing Economy With An Imperfectly Competitive Sector," Working papers 45, Centre for Development Economics, Delhi School of Economics.
  • Handle: RePEc:cde:cdewps:45
    as

    Download full text from publisher

    File URL: http://www.cdedse.org/pdf/work45.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    Citations

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


    Cited by:

    1. Xiaokai Yang & Dingsheng Zhang, 1999. "International Trade and Income Distribution," CID Working Papers 18A, Center for International Development at Harvard University.
    2. Syed Tehseen Jawaid & Mariya Ahmad Qureshi & Samra Ali, 2021. "Does immiserizing growth exist? Evidence from world’s top trading nations," Journal of Chinese Economic and Foreign Trade Studies, Emerald Group Publishing Limited, vol. 14(2), pages 124-148, January.
    3. Trofimov, Ivan D., 2018. "Income terms of trade and economic convergence: Evidence from Latin America," MPRA Paper 87598, University Library of Munich, Germany.
    4. Jeffrey Sachs & Xiaokai Yang & Dingsheng Zhang, 2005. "Pattern Of Trade And Economic Development In A Model Of Monopolistic Competition," World Scientific Book Chapters, in: An Inframarginal Approach To Trade Theory, chapter 10, pages 185-221, World Scientific Publishing Co. Pte. Ltd..
    5. Shinsuke Ikeda, 2009. "Export‐ and Import‐Specific Habit Formation," Review of Development Economics, Wiley Blackwell, vol. 13(4), pages 709-718, November.
    6. Jeffrey D. Sachs & Xiaokai Yang & Dingsheng Zhang, 1999. "Trade Pattern and Economic Development when Endogenous and Exogenous Comparative Advantages Coexist," CID Working Papers 03A, Center for International Development at Harvard University.
    7. Jeffrey Sachs & Xiaokai Yang & Dingsheng Zhang, 2005. "Globalization, Dual Economy, And Economic Development," World Scientific Book Chapters, in: An Inframarginal Approach To Trade Theory, chapter 16, pages 349-382, World Scientific Publishing Co. Pte. Ltd..
    8. Ivan Trofimov, 2021. "Income terms of trade and economic convergence: Evidence from Latin America," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 46(2), pages 41-67, June.
    9. Fabrice Nzepang & Saturnin Bertrand Nguenda Anya, 2022. "Effects of ICTs on the Terms of Trade of Sub-Saharan African Economies," Journal of African Trade, Springer, vol. 9(1), pages 107-119, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cde:cdewps:45. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sanjeev Sharma (email available below). General contact details of provider: https://edirc.repec.org/data/cdudein.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.