Technical Progress, Tariffs and Welfare in a Model of Monopolistic Competition
This paper develops a model of trade, with monopolistic competition, between a raw material rich less developed country (LDC) and a technically advanced developed country (DC). It turns out that while many of the neoclassical conclusions regarding the effects of technical progress and tariffs on the terms of trade remain valid, the welfare conclusions are radically different. Our results show that decline in the terms of trade caused by technical progress in DC does not depend on the Hicksian bias of such technical progress. It also turns out that technical progress in DC may harm the LDC under some circumstances. Finally, from the welfare point of view, the more unequal the distribution of income between the DC and the LDC, the larger the benefits accruing to the latter from a tariff.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Volume (Year): 26 (1991)
Issue (Month): 1 (January)
|Contact details of provider:|| Postal: |
Phone: 91-11-2766-6533/34/35, 2766-6703/04/05
Web page: http://www.ierdse.org/
More information through EDIRC
|Order Information:|| Web: http://www.ierdse.org/ Email: |
When requesting a correction, please mention this item's handle: RePEc:dse:indecr:v:26:y:1991:i:1:p:35-50. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Pami Dua)
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.