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http://hdl.handle.net/2445/136258
Title: | Growing through trade in intermediate goods: the role of foreign growth and domestic tariffs |
Author: | Álvarez Albelo, Carmen Manresa, Antonio, 1954- Pigem-Vigo, Mònica |
Keywords: | Comerç exterior Creixement econòmic Foreign trade Economic growth |
Issue Date: | Sep-2018 |
Publisher: | Wiley |
Abstract: | We show that pure Ricardian trade can account for the empirical evidence that domestic growth is more affected by foreign growth than by trade openness. To do this, we develop a two‐country model involving a backward economy that exchanges intermediate goods with a faster growing country. We obtain three main results regarding growth and welfare of the backward economy: (i) the growth‐enhancing comparative advantage is facilitated by faster foreign growth; (ii) the growth rate may be negatively affected or unaffected by a domestic tariff, while it is always positively impacted by foreign growth; and (iii) a domestic tariff could be welfare‐improving. |
Note: | Versió postprint del document publicat a: https://doi.org/10.1111/sjpe.12169 |
It is part of: | Scottish Journal of Political Economy, 2018, vol. 65, num. 4, p. 414-436 |
URI: | http://hdl.handle.net/2445/136258 |
Related resource: | https://doi.org/10.1111/sjpe.12169 |
ISSN: | 0036-9292 |
Appears in Collections: | Articles publicats en revistes (Economia) |
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681992.pdf | 259.45 kB | Adobe PDF | View/Open |
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