A Ricardian model of trade and growth with endogenous trade status

• 成果类型: Article
• 署名作者: Naito, Takumi
• 署名单位: Waseda University
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2011.11.007
• 发表日期: 2012
• 页码: 80-88
• 关键词: Ricardian model; endogenous growth; Endogenous trade status; Unilateral trade liberalization; Terms of trade

摘要

We formulate a two-country, continuum-good Ricardian model of trade and endogenous growth with endogenous trade status. After establishing the existence, uniqueness, and global stability of a balanced growth path, we show that, compared with the old balanced growth path, a permanent fall in the trade cost in any one country: (i) raises the growth rates of capital in all countries for all periods; (ii) increases both the range of the imported varieties and that of the exported varieties in all countries for all periods; and (iii) raises welfare in all countries. Our theoretical predictions are qualitatively consistent with the empirical evidence. (C) 2011 Elsevier B.V. All rights reserved.