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Trade, Non-Scale Growth, and Uneven Development

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  • Hiroaki Sasaki

Abstract

This paper investigates the relationship between trade and economic development using a two-country, non-scale-growth model. Depending on the share of the expenditure for manufactured goods, we obtain two di erent results with regard to long-run production patterns. If the share of the expenditure is less than or equal to half, the leader country diversifies while the follower country asymptotically specializes in agriculture completely. If, on the other hand, the share of the expenditure is more than half, the leader country completely specializes in manufacturing while the follower country asymptotically specializes in agriculture completely. Whether or not the follower country can catch up with the leader country in the long run depends on two factors: (1) the patterns of production in both countries and (2) the measure of economic welfare that is used, that is, per capita income or per capita consumption.

Suggested Citation

  • Hiroaki Sasaki, 2010. "Trade, Non-Scale Growth, and Uneven Development," Discussion papers e-10-002, Graduate School of Economics Project Center, Kyoto University.
    • Handle: RePEc:kue:dpaper:e-10-002
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    References listed on IDEAS

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    Cited by:

    1. Hiroaki Sasaki, 2013. "Positive and Negative Population Growth and Long-Run Trade Patterns: A Non-Scale Growth Model," Discussion papers e-13-004, Graduate School of Economics Project Center, Kyoto University.
    2. Sasaki, Hiroaki, 2015. "International Trade And Industrialization With Negative Population Growth," Macroeconomic Dynamics, Cambridge University Press, vol. 19(8), pages 1647-1658, December.
    3. Rudiger Arnim & Daniele Tavani & Laura Carvalho, 2014. "Redistribution in a Neo-Kaleckian Two-country Model," Metroeconomica, Wiley Blackwell, vol. 65(3), pages 430-459, July.
    4. Thomas Christiaans, 2017. "On the implications of declining population growth for regional migration," Journal of Economics, Springer, vol. 122(2), pages 155-171, October.
    5. Sasaki, Hiroaki, 2018. "North-South Trade and Uneven Development in a Classical Conventional Wage Share Growth Model," MPRA Paper 88631, University Library of Munich, Germany.
    6. Hiroaki Sasaki, 2012. "Trade Patterns and Non-Scale Growth between Two Countries," Discussion papers e-12-006, Graduate School of Economics Project Center, Kyoto University.
    7. Sasaki, Hiroaki, 2017. "Population growth and trade patterns in semi-endogenous growth economies," Structural Change and Economic Dynamics, Elsevier, vol. 41(C), pages 1-12.

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    More about this item

    Keywords

    international trade; non-scale growth; uneven development;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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