On the static and dynamic costs of trade restrictions for small developing countries

• 成果类型: Article
• 署名作者: Van Marrewijk, Charles; Berden, Kom G.
• 署名单位: Erasmus University Rotterdam - Excl Erasmus MC; Erasmus University Rotterdam; Tinbergen Institute
• 刊物名称: JOURNAL OF DEVELOPMENT ECONOMICS
• ISSN/ISSBN: 0304-3878
• DOI: 10.1016/j.jdeveco.2006.09.002
• 发表日期: 2007
• 页码: 46-60
• 关键词: growth; Development; static and dynamic costs; trade restrictions; New goods

摘要

We analyze the costs of trade restrictions for a small developing economy (LDC). Intermediate goods invented elsewhere are only introduced on the LDC market if it is profitable to do so. The LDC economy evolves to a balanced growth path in which income, welfare, and the share of available goods increase if trade restrictions fall. The adjustment path is asymmetric: an increase in trade restrictions leads to a slow-down of economic growth, while a decrease may lead to a rapid catch-up process. The dynamic costs of trade restrictions are in general substantially larger than the static costs. (C) 2006 Elsevier B.V. All rights reserved.