《Chap007 Growth and Trade》.ppt

Object of Chapter 7 Framework of Chapter 7 Definition of Growth Factor Growth, Trade and Welfare Technology and Trade Presentation: Will China meet “Dutch Disease” or “Immiserizing Growth”? Review Definition of Growth Definition of Growth Example: US: Land-abundant Two factors: Labor(L) Land(T) Wheat :Land-intensive Cloth: Labor-intensive 1.1 Balanced Growth 1.2 Import-biased Growth 1.3 Export-biased Growth 2. Factor Growth, Trade and Welfare The effects of growth is different in a Large country and a small country 2.1 Effects of Growth in a Small Country 2.2 Effects of Growth in a Large Country 2.3 Summary Small Country and Large Country 2.1 Effects of Growth in a Small Country Small Country——Constant Relative Price 2.1.1 Import-biased Growth in a small country 2.1.2 Export-biased Growth in a small country Case Study: Rybczyski Theorem and Dutch Disease 2.1.1 Import-biased Growth in a Small Country 2.1.1 Import-biased Growth in a Small Country Terms of Trade: Unchanged Trade Triangle: Smaller Welfare of Nation: Better off 2.1.2 Export-biased Growth in a Small Country 2.1.2 Export-biased Growth in a Small Country Production: Wheat ↑; Cloth ↓ Rybczyski Theorem(罗勃津斯基定理) In a two-good country with constant prices, if the endowment of one factor of production increases, while the other factor remains unchanged, has two results: ——An increase in the output of the good that uses the growing factor intensively; ——A decrease in the output of the other good. Case Study:“Dutch Disease” in 1970s Netherlands developed natural gas fields under the North Sea; Deindustrialization This case is usually called”Dutch Disease” Reasons of “Dutch Disease” Chain Reactions of Dutch Disease Deindustrialization； Lack of Innovation； Outflow of Human Resource； Corruption Natural resources, gifts or curses? Resource-poor economies often vastly outperform resource-rich economies in economic growth. Russia, another Dutch？ 2.2 Effects of Growth in a