Growing through trade in intermediate goods: the role of foreign growth and domestic tariffs

We show that pure Ricardian trade can account for the empirical evidence that domestic growth is more affected by foreign growth than by trade openness. To do this, we develop a two‐country model involving a backward economy that exchanges intermediate goods with a faster growing country. We obtain...

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Detalles Bibliográficos
Autores: Álvarez Albelo, Carmen, Manresa, Antonio, 1954-, Pigem-Vigo, Mònica
Tipo de recurso: artículo
Estado:Versión aceptada para publicación
Fecha de publicación:2018
País:España
Institución:Universidad de Barcelona
Repositorio:Dipòsit Digital de la UB
OAI Identifier:oai:diposit.ub.edu:2445/136258
Acceso en línea:https://hdl.handle.net/2445/136258
Access Level:acceso abierto
Palabra clave:Comerç exterior
Creixement econòmic
Foreign trade
Economic growth
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spelling Growing through trade in intermediate goods: the role of foreign growth and domestic tariffsÁlvarez Albelo, CarmenManresa, Antonio, 1954-Pigem-Vigo, MònicaComerç exteriorCreixement econòmicForeign tradeEconomic growthWe show that pure Ricardian trade can account for the empirical evidence that domestic growth is more affected by foreign growth than by trade openness. To do this, we develop a two‐country model involving a backward economy that exchanges intermediate goods with a faster growing country. We obtain three main results regarding growth and welfare of the backward economy: (i) the growth‐enhancing comparative advantage is facilitated by faster foreign growth; (ii) the growth rate may be negatively affected or unaffected by a domestic tariff, while it is always positively impacted by foreign growth; and (iii) a domestic tariff could be welfare‐improving.Wiley2018info:eu-repo/semantics/articleinfo:eu-repo/semantics/acceptedVersionapplication/pdfhttps://hdl.handle.net/2445/136258Articles publicats en revistes (Economia)reponame:Dipòsit Digital de la UBinstname:Universidad de BarcelonaInglésVersió postprint del document publicat a: https://doi.org/10.1111/sjpe.12169Scottish Journal of Political Economy, 2018, vol. 65, num. 4, p. 414-436https://doi.org/10.1111/sjpe.12169(c) Scottish Economic Society, 2018info:eu-repo/semantics/openAccessoai:diposit.ub.edu:2445/1362582026-05-27T06:46:51Z
dc.title.none.fl_str_mv Growing through trade in intermediate goods: the role of foreign growth and domestic tariffs
title Growing through trade in intermediate goods: the role of foreign growth and domestic tariffs
spellingShingle Growing through trade in intermediate goods: the role of foreign growth and domestic tariffs
Álvarez Albelo, Carmen
Comerç exterior
Creixement econòmic
Foreign trade
Economic growth
title_short Growing through trade in intermediate goods: the role of foreign growth and domestic tariffs
title_full Growing through trade in intermediate goods: the role of foreign growth and domestic tariffs
title_fullStr Growing through trade in intermediate goods: the role of foreign growth and domestic tariffs
title_full_unstemmed Growing through trade in intermediate goods: the role of foreign growth and domestic tariffs
title_sort Growing through trade in intermediate goods: the role of foreign growth and domestic tariffs
dc.creator.none.fl_str_mv Álvarez Albelo, Carmen
Manresa, Antonio, 1954-
Pigem-Vigo, Mònica
author Álvarez Albelo, Carmen
author_facet Álvarez Albelo, Carmen
Manresa, Antonio, 1954-
Pigem-Vigo, Mònica
author_role author
author2 Manresa, Antonio, 1954-
Pigem-Vigo, Mònica
author2_role author
author
dc.subject.none.fl_str_mv Comerç exterior
Creixement econòmic
Foreign trade
Economic growth
topic Comerç exterior
Creixement econòmic
Foreign trade
Economic growth
description We show that pure Ricardian trade can account for the empirical evidence that domestic growth is more affected by foreign growth than by trade openness. To do this, we develop a two‐country model involving a backward economy that exchanges intermediate goods with a faster growing country. We obtain three main results regarding growth and welfare of the backward economy: (i) the growth‐enhancing comparative advantage is facilitated by faster foreign growth; (ii) the growth rate may be negatively affected or unaffected by a domestic tariff, while it is always positively impacted by foreign growth; and (iii) a domestic tariff could be welfare‐improving.
publishDate 2018
dc.date.none.fl_str_mv 2018
dc.type.none.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/acceptedVersion
format article
status_str acceptedVersion
dc.identifier.none.fl_str_mv https://hdl.handle.net/2445/136258
url https://hdl.handle.net/2445/136258
dc.language.none.fl_str_mv Inglés
language_invalid_str_mv Inglés
dc.relation.none.fl_str_mv Versió postprint del document publicat a: https://doi.org/10.1111/sjpe.12169
Scottish Journal of Political Economy, 2018, vol. 65, num. 4, p. 414-436
https://doi.org/10.1111/sjpe.12169
dc.rights.none.fl_str_mv (c) Scottish Economic Society, 2018
info:eu-repo/semantics/openAccess
rights_invalid_str_mv (c) Scottish Economic Society, 2018
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Wiley
publisher.none.fl_str_mv Wiley
dc.source.none.fl_str_mv Articles publicats en revistes (Economia)
reponame:Dipòsit Digital de la UB
instname:Universidad de Barcelona
instname_str Universidad de Barcelona
reponame_str Dipòsit Digital de la UB
collection Dipòsit Digital de la UB
repository.name.fl_str_mv
repository.mail.fl_str_mv
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