Neighbor-Immiserizing Growth: The Asian Crisis

Eun Choi

Staff General Research Papers Archive from Iowa State University, Department of Economics

Abstract: This paper investigates the effects of population growth and Chinaï¾’s entry into the world trading regime on the North and the South. In the absence of the terms of trade effect, population growth reduces the standard of living and causes a decline in welfare. Unilateral trade liberalization of China will worsen the terms of trade for other countries in the South, but will improve those for the North. Thus, population control is an important means to close the gap in per capita income between developing and developed economies. Trade liberalization by developing countries may not necessarily induce income convergence.

Date: 2001-01-01
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Published in Japanese Economic Review 2001, vol. 52 no. 4, pp. 405-16

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Persistent link: https://EconPapers.repec.org/RePEc:isu:genres:5146

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