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International Trade and Industrialization with Negative Population Growth

  • Hiroaki Sasaki

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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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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  1. Hiroaki Sasaki, 2008. "International Trade And Industrialization With Capital Accumulation And Skill Acquisition," Manchester School, University of Manchester, vol. 76(4), pages 464-486, 07.
  2. Hiroaki Sasaki, 2010. "Trade, Non-Scale Growth, and Uneven Development," Discussion papers e-10-002, Graduate School of Economics Project Center, Kyoto University.
  3. Hiroaki Sasaki, 2012. "Trade Patterns and Non-Scale Growth between Two Countries," Discussion papers e-12-006, Graduate School of Economics Project Center, Kyoto University.
  4. Hiroaki Sasaki, 2011. "Population growth and north-south uneven development," Oxford Economic Papers, Oxford University Press, vol. 63(2), pages 307-330, April.
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