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A Model of Trade in Exhaustible Resources

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  • Slobodan Djajic

Abstract

This paper develops a two-period, two-country model of trade in exhaustible resources. It studies how asymmetries in per-capita resource endowments and rates of time preference determine the equilibrium patter of international trade. The degree of intertemporal consumption substitution plays a decisive role in resolving which influence is greater. The effects of resource discovery and increase government spending on a country's terms of trade are also considered.

Suggested Citation

  • Slobodan Djajic, 1985. "A Model of Trade in Exhaustible Resources," Working Paper 607, Economics Department, Queen's University.
    • Handle: RePEc:qed:wpaper:607
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    Cited by:

    1. Osei, Edward & LAPAN, HARVEY E, 1995. "The Generalized H-O Model with Different Natural Resource Intensities," ISU General Staff Papers 199501010800001273, Iowa State University, Department of Economics.

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