We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Public infrastructure for production and international trade in a small open economy: a dynamic analysis.
- Authors
Yanase, Akihiko; Tawada, Makoto
- Abstract
This paper develops a dynamic trade model with a stock of public infrastructure, which has a property of 'unpaid factor of production'. We show that a country with a smaller (larger) labor endowment tends to become an exporter of a good whose productivity is more (less) sensitive to the stock of public infrastructure. We also show that after the opening of trade, the labor-scarce country becomes unambiguously better off but the labor-abundant country may become worse off. Overall, these results contrasts with those obtained in the case of public intermediate goods with a 'creation of atmosphere' property.
- Subjects
INTERNATIONAL trade; FREE trade; COMMERCE; COMMERCIAL policy; TRADE goods
- Publication
Journal of Economics, 2017, Vol 121, Issue 1, p51
- ISSN
0931-8658
- Publication type
Article
- DOI
10.1007/s00712-016-0519-z