TY - JOUR
T1 - Terms of trade, economic growth, and trade patterns
T2 - A small open-economy case
AU - Kaneko, Akihiko
N1 - Funding Information:
For helpful comments I am most grateful to my supervisor, Yoshiyasu Ono, and to Shinsuke Ikeda and Akihisa Shibata. I also thank two anonymous referees and seminar participants at University of Tsukuba, Osaka City University, and Tohoku University. This research was supported by a grant from JSPS Research Fellowship for Young Scientists and from Seimeikai. Of course any remaining errors are mine.
PY - 2000
Y1 - 2000
N2 - By incorporating human capital accumulation into a dynamic trade model, we examine the relationship between the growth rate and the specialization pattern of a growing economy. We found that as long as its autarky price differs from the world price, a small open-economy eventually specializes completely. Furthermore, the impact of the terms of trade on the growth rate depends on the trade pattern. Specifically, if a country specializes in a capital commodity, the growth rate is unaffected by the terms of trade. If it specializes in a consumption commodity, its growth rate is significantly influenced by the terms of trade. (C) 2000 Elsevier Science B.V. All rights reserved.
AB - By incorporating human capital accumulation into a dynamic trade model, we examine the relationship between the growth rate and the specialization pattern of a growing economy. We found that as long as its autarky price differs from the world price, a small open-economy eventually specializes completely. Furthermore, the impact of the terms of trade on the growth rate depends on the trade pattern. Specifically, if a country specializes in a capital commodity, the growth rate is unaffected by the terms of trade. If it specializes in a consumption commodity, its growth rate is significantly influenced by the terms of trade. (C) 2000 Elsevier Science B.V. All rights reserved.
KW - Endogenous growth
KW - Terms of trade
KW - Trade pattern
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U2 - 10.1016/S0022-1996(99)00052-5
DO - 10.1016/S0022-1996(99)00052-5
M3 - Article
AN - SCOPUS:0033829875
SN - 0022-1996
VL - 52
SP - 169
EP - 181
JO - Journal of International Economics
JF - Journal of International Economics
IS - 1
ER -
