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International Transmission of Government Spending Monopolistic Competition and North-South Trade

Anwar, Sajid (1997). International Transmission of Government Spending Monopolistic Competition and North-South Trade. International Economic Journal,11(4):113-126.

Document type: Journal Article
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Title International Transmission of Government Spending Monopolistic Competition and North-South Trade
Author Anwar, Sajid
Journal Name International Economic Journal
Publication Date 1997
Volume Number 11
Issue Number 4
Start Page 113
End Page 126
Place of Publication Seoul, Korea
Publisher Korea International Economic Association
HERDC Category C1 - Journal Article (DEST)
Abstract This paper utilises a North-South general equilibrium model where South exports an intermediate good to North in exchange for differentiated goods. The model is used to examine international transmission of government spending and its welfare implications. It is shown that an increase in government spending in North (South) can increase (decrease) the number of differentiated goods produced, thereby decreasing (increasing) the degree of monopoly power in North. Furthermore an increase in government spending in South can decrease the welfare of North, but the impact of an increase in government spending in North on the welfare of South cannot be unambiguously determined.
 
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Created: Fri, 12 Sep 2008, 08:35:25 CST by Administrator