Trade and development in a labor surplus economy:

This paper looks at a model in which two countries trade agricultural and manufactured commodities. The manufactured-goods sector produces with increasing returns to scale under conditions of monopolistic competition. It is shown that an increase in land endowment (or an increase in agricultural pro...

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Bibliographic Details
Main Authors: Barbier, Edward 1957- (Author), Rauscher, Michael 1958- (Author)
Format: Book
Language:English
Published: Munich CES 2005
Munich Ifo
Series:CESifo working papers 1481 : Category 7, Trade policy
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Summary:This paper looks at a model in which two countries trade agricultural and manufactured commodities. The manufactured-goods sector produces with increasing returns to scale under conditions of monopolistic competition. It is shown that an increase in land endowment (or an increase in agricultural productivity) can have negative welfare implications for both countries. This outcome can result under three different scenarios: asymmetries across countries, i.e. a North-South model, a neoclassical labor market in the home country's instead of a Lewisian market, and alternative utility functions.
Item Description:Auch im Internet unter den Adressen www.SSRN.com und www.CESifo.de verfügbar
Physical Description:33 S. graph. Darst. 21 cm

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