History-dependent paths and trade gains in a small open economy with a public intermediate good

Akihiko Yanase, Makoto Tawada

    研究成果: Article査読

    7 被引用数 (Scopus)

    抄録

    This study reexamines McMillan's (International Economic Review 19 (1978), 665-78) analysis of a dynamic small open economy with a public intermediate good. Concerning the trade patterns of the open economy, we find results that were overlooked in McMillan's analysis. Among others, if labor endowment is of intermediate size, there are two saddle-point steady states, and the initial stock of the public good determines the long-run trade pattern. We also add a gains-from-trade analysis to McMillan's model and demonstrate that if the economy has a comparative advantage in a good with productivity less sensitive to the public intermediate good, the economy may lose from trade at the steady state.

    本文言語English
    ページ(範囲)303-314
    ページ数12
    ジャーナルInternational Economic Review
    53
    1
    DOI
    出版ステータスPublished - 2012 2月

    ASJC Scopus subject areas

    • 経済学、計量経済学

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