Learning by Doing in the Presence of an Open Access Renewable Resource: Is Growth Sustainable?

C. McAudland

Working Papers from Research Seminar in International Economics, University of Michigan

Abstract: This paper focuses on the impact of technological progress (modeled as learning by doing) on economic growth when one of the inputs in production is an open access renewable resource. Technological progress is found to indi- rectly induce resource depletion, such that sustainable growth will not occur in autarky under certain preferences, and is possible in trade only if the resource sector contracts over time or shuts down completely. Comparisons of steady state welfare in autarky and free trade reveal that for very high or low world prices of the resource-based good, it is possible for the economy to gain from trade. However if the price is intermediate, it will instead lose.

Keywords: TECHNOLOGICAL CHANGE; ECONOMIC GROWTH (search for similar items in EconPapers)
JEL-codes: O31 O32 O47 (search for similar items in EconPapers)
Pages: 38 pages
Date: 1998
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Persistent link: https://EconPapers.repec.org/RePEc:mie:wpaper:426

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