Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/189068
Authors: 
Flatters, Frank
Year of Publication: 
1972
Series/Report no.: 
Queen's Economics Department Working Paper 83
Abstract: 
International trade theorists recently have rediscovered a possibility, pointed many years ago by F.Y. Edgeworth, that growth in an open economy might actually decrease the welfare of the community. According to Bhagwati, immiserization could occur as the result of growth only in the presence of non-optimal policies. In the first case, where the terms of trade could be affected by the actions of the home country, the appropriate policy would be to impose an optimum tariff at all points in time. In the second case, where the country was so small that it could not affect the terms of trade, the optimal policy would be free trade. The purpose of this paper is to derive conditions for the occurence of immiserization due to factor accumulation, first in the sense of declining aggregate real incomes (section 1) and second in the sense of declining per capita incomes (section 2).
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.