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International Trade and Industrialization with Negative Population Growth

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  • Hiroaki Sasaki
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    Abstract

    This paper builds a small-open-economy, non-scale-growth model with negative population growth and investigates the relationship between trade patterns and per capita consumption growth. Under free trade, if the population growth rate is negative and its absolute value is small, the home country becomes an agricultural country. Then, the long-run growth rate of per capita consumption is positive and depends on the world population growth rate. On other hand, if the population growth rate is negative and its absolute value is large, the home country becomes a manufacturing country. Then, the long-run growth rate of per capita consumption is positive and depends on both the home country and the world population growth rate. Moreover, the home country is better off under free trade than under autarky in terms of per capita consumption growth irrespective of whether the population growth is positive or negative.

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    File URL: http://www.econ.kyoto-u.ac.jp/projectcenter/Paper/e-12-009.pdf
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    Bibliographic Info

    Paper provided by Graduate School of Economics Project Center, Kyoto University in its series Discussion papers with number e-12-009.

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    Length: 17 pages
    Date of creation: Dec 2012
    Date of revision:
    Handle: RePEc:kue:dpaper:e-12-009

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    Related research

    Keywords: non-scale-growth model; negative population growth; trade patterns; per capita growth;

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    Cited by:
    1. Hiroaki Sasaki, 2013. "Positive and Negative Population Growth and Long-Run Trade Patterns: A Non-Scale Growth Model," Discussion papers e-13-004, Graduate School of Economics Project Center, Kyoto University.

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