Immiserizing deindustrialization: A dynamic trade model with credit constraints

• 成果类型: Article
• 署名作者: Chesnokova, Tatyana
• 署名单位: University of Auckland
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2007.03.001
• 发表日期: 2007
• 页码: 407-420
• 关键词: credit constraints; deindustrialization; immiserizing trade; endogenous wealth distribution; comparative advantage

摘要

The paper develops an open economy dynamic model with bequests and credit constraints. The agricultural sector uses only labor, the industrial sector needs an indivisible investment. Under autarky, productive agriculture provides the funds needed for investment in industry and in equilibrium credit constraints are not binding. If agriculture is not sufficiently productive, the price of the industrial good must be high enough to make the industrial sector sustainable. In an open economy, if the country has the comparative advantage in agriculture, deindustrialization may occur over time. Deindustrialization is welfare-reducing when the negative wealth distributional effects swamp the gains from trade. (C) 2007 Elsevier B.V. All rights reserved.