Agricultural Exports, Tariffs and Growth

Arbeitspapier

This article presents a Ricardian model of trade with learning-by-doing to study the effect of barriers to trade in products with low growth potential on the long-run economic growth. The model shows that, when elasticity of demand for the product with a lower learning potential is lower than unitary, a reduction in the tariff imposed on this product, may shift the demand toward the product with a higher learning potential, thus enhancing economic growth in the exporter economy. Therefore, the current trend of reduction in tariffs on agricultural exports not only generates a positive welfare effect in the short run, but may similarly be beneficial for developing economies in the long run, since it also increases their incentive to develop sectors with higher growth potential.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 4583

Classification and Topics

• Classification: Wirtschaft ; Neoclassical Models of Trade ; Economic Integration ; Open Economy Macroeconomics ; One, Two, and Multisector Growth Models ; Agriculture in International Trade
• Subject: trade barriers ; agricultural export ; learning-by-doing

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Azarnert, Leonid V.
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2014

Further information

• Handle: http://hdl.handle.net/10419/93424
• Last update: 10.03.2025, 11:44 AM CET