Abstract
In this chapter we investigate how the pattern of trade is determined in an open economy with a natural resource. We particularly confine our attention to the case of a renewable resource since the case of a non-renewable resource can be treated as its special case. The natural resource is supposed to be extracted by competitive firms and is used as an intermediate good for the production of consumption commodities. Since the resource is renewable, it does not necessarily become extinct and hence there may exist a steady state where the rate of resource-extraction matches its natural growth. In our competitive model, the economy will be shown to reach the steady state from any initial position. Thus our main concern is with the analysis of the steady state.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Arrow, K.J., 1968. “Applications of Control Theory to Economic Growth,” Stanford Univ. Inst. Math. Studies Soc. Sci., Stanford.
Brown, Jr., G., 1974, “An Optimal Program for Managing Common Property Resources with Congestion Externalities,” Journal of Political Economy 82, 163–173.
Dasgupta, P.S. and G.M. Heal, 1979, Economic Theory and Exhaustible Resources, Cambridge University Press.
Kemp, M.C. and N.V. Long, 1979, “International Trade with an Exhaustible Resource: A Theorem of Rybczynski Type,” International Economic Review 20, 671–677.
Kemp, M.C. and N.V. Long, 1984, “The Role of Natural Resources in Trade Models,” in Handbook of International Economics, Vol. 1, edited by R.W. Jones and P.B. Kenen, North-Holland, Amsterdam.
Lesourne, J., 1976, “General Equilibrium with a Replenishable Natural Resource: A Comment,” Review of Economic Studies 43, 557–560.
Ono, H., 1982, “Note on International Trade with an Exhaustible Resource: A Theoren of Rybczynski Type,” International Economic Review 23, 165–170.
Smith, V.L., 1974, “General Equilibrium with a Replenishable Natural Resource,” Review of Economic Studies, Symposium, 105-115.
Tawada, M., 1982, “A Note on International Trade with a Renewable Resource,” International Economic Review 23, 157–163.
Tawada, M., 1984, “International Trade with a Replenishable Resource: The Steady State Analysis,” Economic Studies Quarterly 35, 39–45.
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 1989 Springer-Verlag Berlin Heidelberg
About this chapter
Cite this chapter
Tawada, M. (1989). Natural Resources and the Dynamic Aspect of International Trade. In: Production Structure and International Trade. Lecture Notes in Economics and Mathematical Systems, vol 327. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-45664-0_6
Download citation
DOI: https://doi.org/10.1007/978-3-642-45664-0_6
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-540-50916-5
Online ISBN: 978-3-642-45664-0
eBook Packages: Springer Book Archive