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Neighbour‐Immiserizing Growth: The Asian Crisis

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  • E. Kwan Choi

Abstract

This paper investigates the effects of population growth and China’s entry into the world trading regime on the North and the South. In the absence of the terms of trade effect, population growth reduces the standard of living and causes a decline in welfare. Unilateral trade liberalization of China will worsen the terms of trade for other countries in the South, but will improve those for the North. Thus, population control is an important means to close the gap in per capita income between developing and developed economies. Trade liberalization by developing countries may not necessarily induce income convergence. JEL Classification Number: F1.

Suggested Citation

  • E. Kwan Choi, 2001. "Neighbour‐Immiserizing Growth: The Asian Crisis," The Japanese Economic Review, Japanese Economic Association, vol. 52(4), pages 405-416, December.
    • Handle: RePEc:bla:jecrev:v:52:y:2001:i:4:p:405-416
    DOI: 10.1111/1468-5876.00203
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    Cited by:

    1. Wong, Kar-yiu, 2003. "The impacts of China's WTO accession on the Southeast Asian economies: A theoretical analysis," China Economic Review, Elsevier, vol. 14(3), pages 208-226.

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    JEL classification:

    • F1 - International Economics - - Trade

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