IDEAS home Printed from https://ideas.repec.org/a/oup/restud/v61y1994i3p589-601..html
   My bibliography  Save this article

"Once-off" and Continuing Gains from Trade

Author

Listed:
  • M. Scott Taylor

Abstract

Most economists are familiar with the static or "once-off" welfare gains created by opening an economy to trade. Much less is known about how the resource reallocations necessitated by this move affect long-run growth, and hence whether they provide dynamic or continuing welfare gains in future periods. This paper employs a dynamic Ricardian trade model to provide a decomposition of the gains from trade into "once-off" and continuing categories. In one version of the model, trade is always welfare enhancing; in the other, "once-off" losses may occur alongside dynamic gains. In both versions the magnitude of "once-off" and continuing effects are related to absolute and relative country size, similarity in production structures, rates of time preference, and the productivity of R&D.

Suggested Citation

  • M. Scott Taylor, 1994. ""Once-off" and Continuing Gains from Trade," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 61(3), pages 589-601.
    • Handle: RePEc:oup:restud:v:61:y:1994:i:3:p:589-601.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.2307/2297905
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

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


    Cited by:

    1. MARTINS, Ana Paula, 2015. "Increasing Returns And Endogenous Growth: Market Size And Taste For Variety," Academica Science Journal, Economica Series, Dimitrie Cantemir University, Faculty of Economical Science, vol. 1(5), pages 3-33, June.
    2. Ruchi Gupta, 2011. "What Causes Trade-led Growth in India?," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 5(3), pages 293-310, August.
    3. Jaume Ventura, 2005. "A Global View of Economic Growth," Working Papers 203, Barcelona School of Economics.
    4. Goh, Ai-Ting & Olivier, Jacques, 2002. "Learning by doing, trade in capital goods and growth," Journal of International Economics, Elsevier, vol. 56(2), pages 411-444, March.
    5. Walz, Uwe, 1998. "Does an enlargement of a common market stimulate growth and convergence?," Journal of International Economics, Elsevier, vol. 45(2), pages 297-321, August.
    6. Salwa Trabelsi, 2018. "Public Education Spending and Economic Growth: The Governance Threshold Effect," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 43(1), pages 101-124, March.
    7. Feeney, JoAnne, 1999. "International risk sharing, learning by doing, and growth," Journal of Development Economics, Elsevier, vol. 58(2), pages 297-318, April.
    8. Kar Muhsin & Peker Osman & Kaplan Muhittin, 2008. "Trade Liberalization, Financial Development and Economic Growth in The Long Term: The Case of Turkey," South East European Journal of Economics and Business, Sciendo, vol. 3(2), pages 25-38, November.
    9. Brander, James A. & Scott Taylor, M., 1998. "Open access renewable resources: Trade and trade policy in a two-country model," Journal of International Economics, Elsevier, vol. 44(2), pages 181-209, April.
    10. Muhsin KAR & Saban NAZLIOGLU & Huseyin AGIR, 2014. "Trade Openness, Financial Development, and Economic Growth in Turkey: Linear and Nonlinear Causality Analysis," Journal of BRSA Banking and Financial Markets, Banking Regulation and Supervision Agency, vol. 8(1), pages 63-86.
    11. Aslan, Alper & Kaplan, Muhittin, 2008. "Gumruk Birligi’Nin Firma Verimlilik Yakinsamasina Etkisi [The impact of customs union on firm productivity convergence]," MPRA Paper 10597, University Library of Munich, Germany.
    12. John J. Seater & Lei Ji, 2012. "Trade, Growth, and the World Income Distribution," DEGIT Conference Papers c017_033, DEGIT, Dynamics, Economic Growth, and International Trade.
    13. Feenstra, Robert C., 1996. "Trade and uneven growth," Journal of Development Economics, Elsevier, vol. 49(1), pages 229-256, April.
    14. Amy Jocelyn Glass, 1999. "Imitation as a Stepping Stone to Innovation," Working Papers 99-11, Ohio State University, Department of Economics.
    15. Saatci, Mustafa & Aslan, Alper, 2007. "TÜRKİYE İMALAT SANAYİNDE İTHALATIN PİYASAYI DİSİPLİNE ETME HİPOTEZİNİN TESTİ: PANEL VERi YAKLASIMI," MPRA Paper 10604, University Library of Munich, Germany.
    16. Aslan, Alper & Kula, Ferit, 2008. "Türkiye İmalat Sanayinde Fiyat-Maliyet Marjları: Dönemler ve Sektörler İtibariyle Karsılastırmalı Bir Analiz," MPRA Paper 10606, University Library of Munich, Germany.
    17. Dinopoulos, Elias & Syropoulos, Constantinos, 1997. "Tariffs and Schumpeterian growth," Journal of International Economics, Elsevier, vol. 42(3-4), pages 425-452, May.

    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:oup:restud:v:61:y:1994:i:3:p:589-601.. 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: Oxford University Press (email available below). General contact details of provider: https://academic.oup.com/restud .

    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.