International trade and structural change: a dynamic model of weak sustainability
Résumé
We present a dynamic Heckscher-Ohlin model to study structural change in a sus-
tainability context. We show how resource rich economies maximising steady-state con-
sumption should adopt different development strategies depending on the distribution of
domestic wealth instruments (assets). Owing to the diversity of development strategies
available to both natural resource rich and produced capital rich countries, trade liberal-
isation is not necessarily the best outcome for sustainability in both types of countries.
We offer to amend Adjusted Net Savings (ANS) to include in the indicator trade-induced
specialisation gains from trade to fund structural change and diversification, against eco-
nomic incentives for specialisation.
Origine | Fichiers produits par l'(les) auteur(s) |
---|
Loading...