Can the ageing North benefit from expanding trade with the South?

Patrick Georges, Katerina Lisenkova and Marcel Mérette

Economic Modelling, 2013, vol. 35, issue C, 990-998

Abstract: In this paper we estimate the benefit for the ageing North countries of diversifying some of their trade away from other North countries in favour of 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 North countries can benefit from “enriching decay” through significant improvement in terms of trade. We estimate to what extent enriching decay can be bolstered if the North expands trade with the South. In Europe and Japan, for instance, an appropriate trade diversification strategy may prop up real per capita consumption by 2% and 2.4% respectively.

Keywords: OLG-CGE modelling; Population ageing; International trade; North vs. South (search for similar items in EconPapers)
JEL-codes: E17 F17 J11 (search for similar items in EconPapers)
Date: 2013
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:eee:ecmode:v:35:y:2013:i:c:p:990-998

DOI: 10.1016/j.econmod.2013.09.008

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