The Long-run Trade Pattern in a Growing Economy

Kaneko, Akihiko

doi:10.1007/s00712-002-0580-7

Cited by 4 publications

(5 citation statements)

References 10 publications

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“…We will explain this phenomenon in more detail later. Two elegant recent papers on Ricardo and growth are by Naito () and Kaneko (). But they do not discuss the separated time zones induced mechanism between the level effect and growth effect of trade that we discuss here.…”

Section: Introductionmentioning

confidence: 99%

Virtual trade between separated time zones and growth

Marjit

Mandal

2017

Int J of Economic Theory

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The purpose of this paper is to propose a model where trade has a direct and positive impact on growth rate of two trading nations beyond the level effect. We use the idea of virtual trade in intermediates induced by non‐overlapping time zones and show how trade can increase the equilibrium optimal rate of growth. In this structure the trade impact goes beyond the level effect and directly causes growth. Typically standard models of trade cannot generate an automatic growth impact. Virtual trade may allow production to continue uninterrupted in separated time zones such as between the USA and India, and that can lead to higher growth for both countries. Later we extend the model to incorporate the accumulation of skills which becomes necessary for sustaining steady state growth.

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Section: Introductionmentioning

confidence: 99%

Virtual trade between separated time zones and growth

Marjit

Mandal

2017

Int J of Economic Theory

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“…Previous studies have analyzed the relationship between trade patterns and growth. 2) Two good examples are the works by Kaneko (2003) and Felbermayr (2007). Kaneko (2003) builds a twocountry, twosector, AK growth model and endogenizes the terms of trade.…”

Section: Introductionmentioning

confidence: 99%

“…2) Two good examples are the works by Kaneko (2003) and Felbermayr (2007). Kaneko (2003) builds a twocountry, twosector, AK growth model and endogenizes the terms of trade. 3) He finds that if an autarkic country with a lower growth rate than its trade partner has a comparative advantage in the consumption goods sector, then that country can narrow or even reverse the growth gap by opening trade.…”

Section: Introductionmentioning

confidence: 99%

Positive and Negative Population Growth and Long-Run Trade Patterns: A Non-Scale Growth Model

Sasaki

2015

The International Economy

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This study builds a twocountry, twosector, nonscale growth model and investigates the relationship between trade patterns and the growth rate of per capita real consumption. Suppose that both countries have different population growth rates, that at least one country has a negative population growth rate, and that the home country has a comparative advantage in manufacturing at the initial point in time. Then, the following two patterns are sustainable in the long run: (1) the home country diversifies (i.e., produces both manufactured and agricultural goods), while the foreign country specializes in agriculture and (2) the home country specializes in agriculture, while the foreign country diversifies. By comparing the growth rate under autarky with that under free trade, we find that in the first case, the foreign country increases its growth rate by engaging in free trade, whereas the home country does so in the latter case.

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“…Manning, Markusen, and Melvin (1993) examine the relationship between the static HO model and the Manning (1981) model. Moreover, Kaneko (2000Kaneko ( , 2003 examines a similar issue in an endogenous growth model. 5 See Obstfeld (1989), Ghosh (1995), and Shibata and Shintani (1998) for recent empirical evidence for high international capital mobility.…”

Section: Introductionmentioning

confidence: 99%

“…Manning, Markusen, and Melvin (1993) examine the relationship between the static HO model and the Manning (1981) model. Moreover, Kaneko (2000, 2003) examines a similar issue in an endogenous growth model.…”

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confidence: 99%

International Asset Trade, Capital Income Taxation, and Specialization Patterns

Futagami

Kaneko

Ono

et al. 2008

J Public Economic Theory

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This paper constructs a small economy version of dynamic Heckscher-Ohlin models with overlapping generations and analyzes effects of capital income taxation on the specialization pattern of the country. It is shown that once international asset trade is allowed, in the presence of international technological asymmetries, a small country eventually leads to perfect specialization in our overlapping generations model. It is also shown that the residence-based tax has no effect on the specialization pattern while the source-based tax has a negative effect on capital accumulation and thereby it can affect the specialization pattern of the small country. Copyright � 2008 Wiley Periodicals, Inc..

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The Long-run Trade Pattern in a Growing Economy

Cited by 4 publications

References 10 publications

Virtual trade between separated time zones and growth

Virtual trade between separated time zones and growth

Positive and Negative Population Growth and Long-Run Trade Patterns: A Non-Scale Growth Model

International Asset Trade, Capital Income Taxation, and Specialization Patterns

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