Economic development under alternative trade regimes

• 成果类型: Article
• 署名作者: Castro, R
• 署名单位: Universite de Montreal; Universite de Montreal
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/j.1468-2354.2006.00391.x
• 发表日期: 2006
• 页码: 611-649
• 关键词: growth

摘要

How does openness affect economic development ? This question is answered in the context of a dynamic general equilibrium model of the world economy, where countries have technological differences that are both sector neutral and specific to the investment goods sector. Relative to a benchmark case of trade in credit markets only, consider (i) a complete restriction of trade and (ii) a full liberalization of trade. The first change decreases the cross-sectional dispersion of incomes only slightly, and produces a relatively small welfare loss. The second change, instead, decreases dispersion by a significant amount, and produces a very large welfare gain.