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International Trade!
Chayun Tantivasadakarn!
Faculty of Economics, Thammasat University!
Chayun Tanti!
1!
Outline!
Classifying the Trade Effects of
Economic Growth
Sources of Growth and the ProductionPossibilities Frontier
Factor Growth, Trade and Welfare
The Small-Country Case and the
Rybczynski Theorem
The Large-Country Case!
Chayun Tanti!
2!
Y!
Import!
III!
protrade!
I!
Export!
P!
Chayun Tanti!
antitrade!
IV!
production
growth!
X!
II! ultra-protrade!
P!
X!
3!
4!
Neutral consumption
growth!
Y!
IV!
B
Import!
III!
I!
antitrade!
II! ultra-antitrade!
Export!
P!
P!
X!
Chayun Tanti!
X!
5!
6!
7!
Y!
B
A/
C/
A
X!
Ultra-antitrade production effect!
Ultra-antitrade consumption effect!
Chayun Tanti!
B/
Expansion of trade!
B
B/
Y!
C/
C
A/
X!
Protrade production effect!
Neutral consumption effect!
8!
9!
Chayun Tanti!
X!
Commodityspecific technical
progress !
X!
10!
Y!
Y/ !
Y!
E/
A!
Y!
X!
X/ !
X!
X! D!
B! X!
11!
12!
Y!
E!
(Home imports)
Y!
U2
K!
B
C
G
A
J!
P 0!
D
P 0!
H!
O!
P 0!
E!
B!
P1
X!
H/!
I!
C!
G!
P 1!
F!
X (Home exports)!
14!
Chayun Tanti!
15!
Immiserizing growth!
Y!
U2
U0
U1
E!
B
K!
J
A
D
P 0!
Chayun Tanti!
Consumer
may
attain
a
lower
P
welfare compared with the preP ! growth since the indifference
X!
curve is U1 < U0.!
1
16!