The Effects of a Booming Export Industry on the Rest of the Economy*

Ngo Long

The Economic Record, 1983, vol. 59, issue 1, 57-60

Abstract: It is argued that the roles of relative factor intensity and of the degree of factor mobility have been neglected in models of booming export industries. This paper shows that, contrary to popular beliefs. the mineral export boom may result in (a) an expansion of all industries, (b) an increase in the profitability of the traditional tradeables sector, and(c) a fall in the relative price of non‐tradeables.

Date: 1983
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