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

Carmen D. Carmen D. Álvarez-Albelo (), Antonio Manresa () and Monica Pigem-Vigo ()
Additional contact information
Carmen D. Carmen D. Álvarez-Albelo: University of La Laguna
Antonio Manresa: CREB, Universitat de Barcelona
Monica Pigem-Vigo: CREB, Universitat de Barcelona

No XREAP2015-04, Working Papers from Xarxa de Referència en Economia Aplicada (XREAP)

Abstract: This paper studies the role of trading partner’ growth and a domestic import tariff in the possibility of growing through trade. To this purpose, a Ricardian model is developed in which a backward economy seeks to increase its long-run growth rate simply by trading with a faster growing partner. It is found that domestic growth may be either negatively affected or unaffected by a domestic import tariff, while it is always positively impacted by foreign growth. Furthermore, convergence in growth rate can emerge both with an import tariff and under free trade. Ours results are consistent with the empirical evidence.

Keywords: Growing through trade; technological differences; trading partner’ growth; import tariff (search for similar items in EconPapers)
JEL-codes: F43 O24 O41 (search for similar items in EconPapers)
Pages: 52 pages
Date: 2015-11, Revised 2015-11
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.xreap.cat/RePEc/xrp/pdf/XREAP2015-04.pdf First version, 2015 (application/pdf)
http://www.xreap.cat/RePEc/xrp/pdf/XREAP2015-04.pdf Revised version, 2015 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:xrp:wpaper:xreap2015-04

Access Statistics for this paper

More papers in Working Papers from Xarxa de Referència en Economia Aplicada (XREAP) Contact information at EDIRC.
Bibliographic data for series maintained by XREAP ( this e-mail address is bad, please contact ).