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AA00260492-20050001-0051.pdf
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Download
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:1.8 MB
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Total downloads since Dec 16, 2009 : 959
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| Title |
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Growing challenges : a Ricardo-Vanek model
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Uchupalanun, Jakrapong
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Faculty of Economics, Thammasat University, Bangkok, Thailand
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Wan, Henry, Jr.
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Department of Economics, Cornell University, Ithaca, USA, LEAS, Nankang, Taiwan
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Keio Economic Society, Keio University
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2005
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Keio economic studies
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42
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1/2
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2005
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51
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68
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This paper presents a Ricardo-Vanek model of international trade, where the presence of a "home good bias" in demand implies the possible existence of a multiplicity of real equilibrium exchange rates, when successful growth makes developing economies "graduated" from their small country status. They emerge to become relevant in the determination of the world market prices. Observation in Crisis 1997 is consistent with such an explanation. The currently rapid growth of both China and India makes the potential upheaval of the world economy a matter of serious challenge.
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Special issue in honor of Prpfessor Michihiro Ohyama
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