Trade, Non-Scale Growth and Uneven Development

Sasaki, Hiroaki

doi:10.1111/j.1467-999x.2011.04135.x

Cited by 6 publications

(5 citation statements)

References 29 publications

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“…Structural characteristics such as sectoral output composition matter greatly here. See Sasaki () for a recent example. We do not address these issues, but instead focus on two one sector economies that might differ in size and behavior (i.e.…”

mentioning

confidence: 92%

Redistribution in a Neo‐Kaleckian Two‐country Model

2014

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We investigate the interaction between demand-driven growth and income distribution in open economies, by combining expenditure-switching and demand spillover effects in a neo-Kaleckian two country model. First, we specify elasticities of wage share and real exchange rate to the money wage relative to labor productivity, in order to precisely describe the distributive pass-through from money wages to the labor share and the real exchange rate. Second, we analyze the demand effects of an increase in the money wage for given labor productivity (a redistribution towards labor) in both Home and Foreign country, as well as globally. We derive closed form results for two identical countries. These results indicate that redistribution towards labor at Home: (i) always increases growth globally if Home is wage-led, but can lead to lower growth at Home relative to Foreign; and (ii) will always imply lower growth at Home relative to Foreign if Home is profit-led, but can still be growth-enhancing at Home. Thus, to the extent that countries are concerned with their relative economic performance, a fallacy of composition can emerge. Numerical simulations suggest that these fallacies could indeed occur. As a consequence, 'returns to coordination' over international labor policies might be substantial.

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confidence: 92%

Redistribution in a Neo‐Kaleckian Two‐country Model

2014

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“…Moreover, if both countries have the same positive population growth rate, we can investigate the transitional dynamics in detail by using phase diagrams. For this, see Sasaki (2011a). 13) The author is indebted to Takumi Naito for pointing out these other trade patterns.…”

Section: Equilibrium Under Free Tradementioning

confidence: 97%

“…However, both these authors use scale growth models, which are subject to the aforementioned problems that make them somewhat counterfactual. By contrast, Sasaki (2011aSasaki ( , 2012 investigates the relationship between trade patterns and growth rates by using nonscale growth models. In particular, the model presented in Sasaki (2011a) examines the longrun trade pattern when both countries' population growth rates are equal.…”

Section: Introductionmentioning

confidence: 99%

“…By contrast, Sasaki (2011aSasaki ( , 2012 investigates the relationship between trade patterns and growth rates by using nonscale growth models. In particular, the model presented in Sasaki (2011a) examines the longrun trade pattern when both countries' population growth rates are equal. Sasaki (2012) extends this model to include the case in which the countries' population growth rates are different.…”

Section: Introductionmentioning

confidence: 99%

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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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“…This empirical fact supports the existence of scale effects. 6 For other studies that examine international trade and economic growth using non-scale-growth models, see Sasaki (2008Sasaki ( , 2011aSasaki ( , 2011b. country completely specializes in manufacturing in the long run.…”

Section: Introductionmentioning

confidence: 99%

International Trade and Industrialization With Negative Population Growth

Sasaki

2014

Macroecon. Dynam.

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This paper builds a small-open-economy nonscale-growth model with negative population growth and investigates the relationship between trade patterns and per capita consumption growth. Under free trade, if the population growth rate is negative and its absolute value is small, the home country becomes an agricultural country. Then the long-run growth rate of per capita consumption is positive and depends on the world population growth rate. On the other hand, if the population growth rate is negative and its absolute value is large, the home country becomes a manufacturing country. Then the long-run growth rate of per capita consumption is positive and depends on both the home country and the world population growth rates. Moreover, the home country is better off under free trade than under autarky in terms of per capita consumption growth irrespective of whether the population growth is positive or negative.

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Trade, Non-Scale Growth and Uneven Development

Cited by 6 publications

References 29 publications

Redistribution in a Neo‐Kaleckian Two‐country Model

Redistribution in a Neo‐Kaleckian Two‐country Model

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

International Trade and Industrialization With Negative Population Growth

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