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The B.E. Journal of Economic Analysis & Policy

Editor-in-Chief: Jürges, Hendrik / Ludwig, Sandra

Ed. by Auriol , Emmanuelle / Brunner, Johann / Fleck, Robert / Mendola, Mariapia / Requate, Till / Schirle, Tammy / de Vries, Frans / Zulehner, Christine

4 Issues per year


IMPACT FACTOR 2016: 0.252
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1935-1682
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Volume 7, Issue 1

Issues

Volume 6 (2006)

Volume 4 (2004)

Volume 2 (2002)

Volume 1 (2001)

Trade and Development in a Labor Surplus Economy

Edward B Barbier / Michael Rauscher
Published Online: 2007-08-30 | DOI: https://doi.org/10.2202/1935-1682.1665

Abstract

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 instead of a Lewisian market in the home country, and alternative utility functions.

Keywords: international trade; labor surplus economy; land expansion; monopolistic competition; North-South model

About the article

Published Online: 2007-08-30


Citation Information: The B.E. Journal of Economic Analysis & Policy, Volume 7, Issue 1, ISSN (Online) 1935-1682, DOI: https://doi.org/10.2202/1935-1682.1665.

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©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston. Copyright Clearance Center

Citing Articles

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[1]
Edward B. Barbier, Johnson Gwatipedza, Duncan Knowler, and Sarah H. Reichard
Agricultural Economics, 2011, Volume 42, Page 113
[2]
Michael Rauscher and Edward B. Barbier
Resource and Energy Economics, 2010, Volume 32, Number 2, Page 241

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