Gradual trade liberalization in a North–South model of the product cycle
| Autor: | Adolfo Cristobal Campoamor |
|---|---|
| Rok vydání: | 2018 |
| Předmět: |
Economics and Econometrics
Endogenous growth theory media_common.quotation_subject 05 social sciences Convergence (economics) International economics General Business Management and Accounting Globalization Product lifecycle 0502 economics and business Economics Product (category theory) 050207 economics Free trade Productivity Welfare 050205 econometrics media_common |
| Zdroj: | Journal of Economics. 127:265-292 |
| ISSN: | 1617-7134 0931-8658 |
| DOI: | 10.1007/s00712-018-0640-2 |
| Popis: | The catchup and convergence of some developing countries with the Western hemisphere is a major experience in modern history. In this paper we investigate the impact on welfare and convergence of a gradual decay in trade costs within a North–South, product cycle setting. In contrast to the existing literature on product cycles with expanding-product-variety models, we explore analytically the consequences of a gradual globalization at any level of initial trade costs. It is proved that convergence only arises if the size and R&D productivity of the South is sufficiently small, relative to the North. Furthermore, lower trade costs are shown to be always beneficial to both the South and the North, under all relevant parameter values. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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