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International Trade and Industrialization with Negative Population Growth

Author

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  • Hiroaki Sasaki

Abstract

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.

Suggested Citation

  • Hiroaki Sasaki, 2012. "International Trade and Industrialization with Negative Population Growth," Discussion papers e-12-009, Graduate School of Economics Project Center, Kyoto University.
  • Handle: RePEc:kue:dpaper:e-12-009
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    File URL: http://www.econ.kyoto-u.ac.jp/projectcenter/Paper/e-12-009.pdf
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    References listed on IDEAS

    as
    1. 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.
    2. Hiroaki Sasaki, 2011. "Trade, Nonā€Scale Growth And Uneven Development," Metroeconomica, Wiley Blackwell, vol. 62(4), pages 691-711, November.
    3. Hiroaki Sasaki, 2011. "Population growth and north-south uneven development," Oxford Economic Papers, Oxford University Press, vol. 63(2), pages 307-330, April.
    4. Hiroaki Sasaki, 2008. "International Trade And Industrialization With Capital Accumulation And Skill Acquisition," Manchester School, University of Manchester, vol. 76(4), pages 464-486, July.
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    Citations

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    Cited by:

    1. Hiroaki Sasaki, 2013. "Positive and Negative Population Growth and Long-Run Trade Patterns: A Non-Scale Growth Model," Discussion papers e-13-004, Graduate School of Economics Project Center, Kyoto University.
    2. Sasaki, Hiroaki & Hoshida, Keisuke, 2014. "Semi-Endogenous R&D Growth Model with Negative Population Growth," MPRA Paper 53833, University Library of Munich, Germany.
    3. Leonid V. Azarnert, 2016. "Trade, Luxury Goods and a Growth Enhancing Tariff," CESifo Working Paper Series 5943, CESifo Group Munich.

    More about this item

    Keywords

    non-scale-growth model; negative population growth; trade patterns; per capita growth;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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