Free trade may save a renewable resource from exhaustion

Akihiko Yanase

    Research output: Contribution to journalArticlepeer-review

    1 Citation (Scopus)

    Abstract

    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.

    Original languageEnglish
    Pages (from-to)226-233
    Number of pages8
    JournalEconomics Bulletin
    Volume33
    Issue number1
    Publication statusPublished - 2013 Aug 30

    ASJC Scopus subject areas

    • Economics, Econometrics and Finance(all)

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