BA 187 ndash; International Trade课件.ppt

Problems in Trade and Development LR Decline in LDC Terms of Trade 精品文档 BA 187 – International Trade Krugman Obstfeld, Chapter 10 Trade Policy Developing Countries 精品文档 An Overview of Developing Countries 精品文档 Lesser Developed Countries (LDC’s) LDC’s are not a homogeneous group Fourth World vs. Third World Countries Fourth World countries are LDC’s whose living standards are very low (sub-Saharan, Nepal, India) Second World vs. First World Countries Second World countries are previously non-market economies of central and Eastern Europe which exhibit characteristics of LDC’s. Low Income - Per capita Incomes $725 Lower-Middle Income - $726 Per capita Incomes $2,900 Upper-Middle Income - $ 2901 Per capita Incomes $8,955 High Income - Per capita Incomes $8,955 精品文档 Characteristics of LDC’s vs Others Low Income Lower-Mid Income Upper-Mid Income High Income Population, mid-1994 (millions) 3,182.2 1,096.9 472.8 849.9 GNP per capita, 1994 (dollars) 380 1,590 4,640 23,460 Avg. growth in GNP per capita 1985-94 3.4% -1.2% 1.4% 1.9% Avg. Inflation rate, 1990-94 59.0% 326.4% 347.1% 2.5% % of Labor Force in Agriculture, 1990 69% 36% 21% 5% % Urban Population, 1994 28% 56% 64% 76% Infant Mortality per 1,000 live births, 1994 58 36 36 7 Source: World Bank, World Development Report 1996. 精品文档 Trade and LDC’s vs Others Low Income Lower-Mid Income Upper-Mid Income High Income Annual Avg. Export Growth, 1980-1990 5.7% 3.5% 3.5% 5.0% Annual Avg. Export Growth, 1990-1994 9.1 7.0 7.8 5.1 Annual Avg. Import Growth, 1990-1994 13.0 9.8 10.4 4.6 Manufactures as % of Exports, 1992 62% 49% 53% 82% Primary Products as % of Exports, 1992 38% 51% 48% 18% Manufactures as % of Imports, 1992 74% 73% 74% 76% Primary Products as % of Imports, 1992 27% 27% 26% 25% Source: World Bank, World Development Report 1996. 精品文档 Trade Development 精品文档 Static vs. Dynamic Effects of Trade Static Effects of Trade on Development Developed in Standard Trade Model. Mutual Gains by specializing in goods