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Contribution Details
| Type | Book Chapter |
| Scope | Discipline-based scholarship |
| Title | Satiation in an international economy |
| Organization Unit | |
| Authors |
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| Editors |
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| Item Subtype | Original Work |
| Refereed | Yes |
| Status | Published in final form |
| Language |
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| Booktitle | Escaping satiation : the demand side of economic growth |
| ISBN | 3-540-42086-X |
| Place of Publication | Berlin |
| Publisher | Springer |
| Page Range | 187 - 197 |
| Date | 2001 |
| Abstract Text | The purpose of this paper is to explore the role of changes in the sectoral structure of world demand for the welfare implications of trade and international specialization. A two-countries two-goods model with external economies of scale is presented. Demand develops according to non-linear Engel-curves with phases of expansion and saturation. The economies of scale are exploited by international labor division where the two countries specialize on different sectors. A country which specializes on the production of the income-inelastic good may suffer losses from international labor division and trade. |
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