IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Resources and North-South trade: a macro analysis in open economies

  • Chichilnisky, Graciela

The paper explores the impacts of resource export policies on major macro variables of the exporter and the importer economies. There are two regions, North and South, trading resources for industrial goods. Each region consumes two goods (basic consumption goods and industrial goods) and produces both using three inputs: capital labor and resources. The relative prices in five markets (of factors and goods) as well as the volumes of output, consumption and international trade are all determined endogenously at a general equilibrium. The results give conditions both for positive and for negative outcomes from moves towards world equilibrium with higher volumes of resource exports. Under certain conditions, increased resource exports produce price distortions with negative consequences. When the South's technologies are dual and its traditional sector uses mostly labor, and the North has a more homogeneous economy and a high rate of profit, at the new equilibrium real wages, employment and consumption decrease in the South, and its terms of trade and real revenues worsen. This is traced to the negative impact of increased resource exports on the domestic terms of trade between the traditional and the industrial sectors. However, the profits of the south increase, thus explaining in part the existence of trade. More favourable outcomes are obtained when the exporting economy is more homogeneous, and sufficient conditions are given for an export policy to improve the welfare of the exporting country, as well as its international terms of trade and export revenues.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: https://mpra.ub.uni-muenchen.de/8120/1/MPRA_paper_8120.pdf
File Function: original version
Download Restriction: no

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 8120.

as
in new window

Length:
Date of creation: 1988
Date of revision:
Handle: RePEc:pra:mprapa:8120
Contact details of provider: Postal: Schackstr. 4, D-80539 Munich, Germany
Phone: +49-(0)89-2180-2219
Fax: +49-(0)89-2180-3900
Web page: https://mpra.ub.uni-muenchen.de

More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Benavie, Arthur, 1978. "Foreign Prices and Income in a Macromodel with Two Domestic Sectors," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 19(3), pages 611-31, October.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:8120. 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: (Ekkehart Schlicht)

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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.