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Neighbor-Immiserizing Growth: The Asian Crisis

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  • Choi, E. Kwan

Abstract

This paper investigates the effects of population growth and Chinaï¾’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.

Suggested Citation

  • Choi, E. Kwan, 2001. "Neighbor-Immiserizing Growth: The Asian Crisis," Staff General Research Papers Archive 5146, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genres:5146
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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.
    2. Choi, E. Kwan, 2007. "North-South trade and income inequality," International Review of Economics & Finance, Elsevier, vol. 16(3), pages 347-356.
    3. Shachmurove, Yochanan & Spiegel, Uriel, 2013. "Sustainable effects of technological progress and trade liberalization," Economic Modelling, Elsevier, vol. 33(C), pages 956-964.
    4. Yochanan Shachmurove & Uriel Spiegel, 2013. "Are All Technological Improvements Beneficial? Absolutely Not," PIER Working Paper Archive 13-027, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.

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