6533b7dbfe1ef96bd1270a0b
RESEARCH PRODUCT
Structural change in a Ricardian world economy: The role of extensive rent
Rodolfo SignorinoNeri SalvadoriGiuseppe Frenisubject
Capital accumulation; Heckscher-Ohlin model; International trade; Ricardian economics; Structural change; Economics and EconometricsEconomics and EconometricsCapital accumulation International trade Structural change Ricardian economics Heckscher-Ohlin modelHeckscher-Ohlin model0211 other engineering and technologies02 engineering and technologyMonetary economicsHeckscher–Ohlin modelInternational tradeWorld economyCapital accumulation0502 economics and businessEconomicsStructural changePopulation growthOpen economy021108 energy050207 economicsSettore SECS-P/01 - Economia PoliticaFree trade05 social sciencesRicardian economicsRicardian economicsCapital accumulationSettore SECS-P/04 - Storia Del Pensiero EconomicoCommodity (Marxism)description
Abstract We study an implication of the Ricardian theory of differential extensive rent in a free trade regime. To this effect we develop a Ricardian two country two commodity open economy model. We assume that, unlike labour, land is heterogeneous both within and across countries and that the ratio of high to low quality land is different among the trading countries. By means of a numerical example we show that as the process of worldwide capital accumulation (and population growth) proceeds an industrial country may find it convenient to increase its domestic corn production and even reverse completely the pattern of its imports and exports.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2019-06-01 |