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Can Ageing North Benefit from Expanding Trade with South?

Marcel Mérette, Patrick Georges and Katerina Lisenkova

No 6162, EcoMod2013 from EcoMod

Abstract: In this paper we estimate the benefit for the ageing North countries of diversifying some of its trade away from the other North countries in favour of the South countries. To this end we use a six-region overlapping generations model that takes into account the demographic trends of the 21st century and trade patterns. We show that ageing Northern countries can benefit from “enriching decay” through significant improvement in the terms of trade. We estimate to what extent the enriching decay can be bolstered if the North expands trade with the South. In Europe, for instance, appropriate trade diversification strategy may prop up Europe’s real per capita consumption by 3%. See above See above

Keywords: North Countries - South Countries; Trade and regional integration; General equilibrium modeling (CGE) (search for similar items in EconPapers)
Date: 2013-06-21
New Economics Papers: this item is included in nep-age
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:ekd:004912:6162

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