This study considers a small open economy in which two tradable final goods are produced by using a non-tradable resource good, which has an open-access property, as an input as well as a primary factor. If the intrinsic growth rate of the resource is relatively low. there may be no non-trivial steady state or multiple steady states. This implies that, by opening international trade, the economy can escape from the risk of complete depletion of the resource.
|Number of pages||8|
|Publication status||Published - 2013|
ASJC Scopus subject areas
- Economics, Econometrics and Finance(all)