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International trade and structural change: a dynamic model of weak sustainability

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  • Louis Dupuy

    (Larefi - Laboratoire d'analyse et de recherche en économie et finance internationales - UB - Université de Bordeaux)

Abstract

We present a dynamic Heckscher-Ohlin model to study structural change in a sus- tainability context. We show how resource rich economies maximising steady-state con- sumption should adopt different development strategies depending on the distribution of domestic wealth instruments (assets). Owing to the diversity of development strategies available to both natural resource rich and produced capital rich countries, trade liberal- isation is not necessarily the best outcome for sustainability in both types of countries. We offer to amend Adjusted Net Savings (ANS) to include in the indicator trade-induced specialisation gains from trade to fund structural change and diversification, against eco- nomic incentives for specialisation.

Suggested Citation

  • Louis Dupuy, 2015. "International trade and structural change: a dynamic model of weak sustainability," Working Papers hal-01149131, HAL.
    • Handle: RePEc:hal:wpaper:hal-01149131
    Note: View the original document on HAL open archive server: https://hal.science/hal-01149131
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    References listed on IDEAS

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    1. Arezki, Rabah & Hadri, Kaddour & Loungani, Prakash & Rao, Yao, 2014. "Testing the Prebisch–Singer hypothesis since 1650: Evidence from panel techniques that allow for multiple breaks," Journal of International Money and Finance, Elsevier, vol. 42(C), pages 208-223.
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    5. Nick Hanley & Louis Dupuy & Eoin McLaughlin, 2015. "Genuine Savings And Sustainability," Journal of Economic Surveys, Wiley Blackwell, vol. 29(4), pages 779-806, September.
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    8. Greasley, David & Hanley, Nick & Kunnas, Jan & McLaughlin, Eoin & Oxley, Les & Warde, Paul, 2014. "Testing genuine savings as a forward-looking indicator of future well-being over the (very) long-run," Journal of Environmental Economics and Management, Elsevier, vol. 67(2), pages 171-188.
    9. Arrow, Kenneth J. & Dasgupta, Partha & Goulder, Lawrence H. & Mumford, Kevin J. & Oleson, Kirsten, 2012. "Sustainability and the measurement of wealth," Environment and Development Economics, Cambridge University Press, vol. 17(3), pages 317-353, June.
    10. repec:sss:wpaper:201409 is not listed on IDEAS
    11. Victoria I. Umanskaya & Edward B. Barbier, 2008. "Can Rich Countries Become Pollution Havens?," Review of International Economics, Wiley Blackwell, vol. 16(4), pages 627-640, September.
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    Cited by:

    1. Nick Hanley & Louis Dupuy & Eoin McLaughlin, 2015. "Genuine Savings And Sustainability," Journal of Economic Surveys, Wiley Blackwell, vol. 29(4), pages 779-806, September.

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    More about this item

    Keywords

    Sustainability; International Trade; Heckscher-Ohlin models; Structural Change;
    All these keywords.

    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F18 - International Economics - - Trade - - - Trade and Environment
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • Q37 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Issues in International Trade

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