Agricultural Exports, Tariffs and Growth

Leonid Azarnert

No 4583, CESifo Working Paper Series from CESifo

Abstract: This article presents a Ricardian model of trade with learning-by-doing to study the effect of barriers to trade in products with low growth potential on the long-run economic growth. The model shows that, when elasticity of demand for the product with a lower learning potential is lower than unitary, a reduction in the tariff imposed on this product, may shift the demand toward the product with a higher learning potential, thus enhancing economic growth in the exporter economy. Therefore, the current trend of reduction in tariffs on agricultural exports not only generates a positive welfare effect in the short run, but may similarly be beneficial for developing economies in the long run, since it also increases their incentive to develop sectors with higher growth potential.

Keywords: trade barriers; agricultural export; learning-by-doing (search for similar items in EconPapers)
JEL-codes: F11 F15 F41 O41 Q17 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Journal Article: Agricultural Exports, Tariffs and Growth (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_4583

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