Trade and Migration with Renewable Natural Resources : Out-of-Steady-State Dynamics

López, Ramón; Schiff, Maurice

Trade and Migration with Renewable Natural Resources : Out-of-Steady-State Dynamics

Autores

Descripción

Commodity price increases associated with the entry of China, India, and other countries into the world economy have led to increased pressure on common-property renewable natural resources. The problem is particularly worrisome for economies that obtain a large share of their income from the exploitation of natural resources in the production of an exportable commodity. This paper contributes to the analysis by examining the issue in the framework of a general equilibrium dynamic model and by solving for both the steady state and the transition dynamics. The authors show that i) a resource-rich, capital-poor economy is more likely to be subject to a "natural resource curse" and complete (irreversible) depletion of natural resources; ii) the latter's likelihood rises with the relative commodity price and labor inflow; iii) a labor inflow under internal equilibrium results in a higher steady-state capital-labor ratio and manufacturing output, and unchanged natural resources and commodity output; iv) import and export taxes result in larger steady-state natural resources and commodity output and smaller capital stock and manufacturing output, and may prevent complete depletion of natural resources; and v) the latter may also be prevented through capital inflows (foreign aid), labor outflow ( liberalization of the North's immigration policy), improved regulation, technical change, and a production tax.

Palabras clave

AGRICULTURE, ALLOCATION, ALLOCATION OF RESOURCES, BANK OFFICE, BENCHMARK, BUDGET CONSTRAINT, CAPITAL ACCUMULATION, CAPITAL FLOWS, CAPITAL GAIN, CAPITAL INFLOWS, CAPITAL MARKETS, CAPITAL STOCK, CAPITAL STOCKS, COMMODITIES, COMMODITY, COMMODITY EXPORT, COMMODITY PRICE, COMMODITY PRICES, COMPETITIVE MARKETS, CONSUMPTION EXPENDITURES, COST OF CAPITAL, COUNTRY OF ORIGIN, DERIVATIVE, DERIVATIVES, DERIVED DEMAND, DEVELOPING COUNTRIES, DEVELOPING COUNTRY, DEVELOPING ECONOMY, DEVELOPMENT ECONOMICS, DISCOUNT RATE, DISCOUNTED VALUE, DISEASES, DISEQUILIBRIUM, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, ECONOMIC THEORY, ELASTICITY, ENVIRONMENTAL DEGRADATION, ENVIRONMENTAL EXTERNALITIES, ENVIRONMENTAL IMPACT, ENVIRONMENTAL RESOURCES, ENVIRONMENTAL SUSTAINABILITY, EQUATIONS, EQUILIBRIUM, EXPECTED RETURNS, EXPENDITURE, EXPORTS, EXTERNALITY, FERTILITY, FULL EMPLOYMENT, GROWTH RATE, GROWTH RATES, HOLDING, HOME COUNTRY, IMMIGRANTS, IMMIGRATION, IMMIGRATION POLICIES, IMMIGRATION POLICY, INCOME, INSTITUTIONAL CONSTRAINT, INSTITUTIONAL CONSTRAINTS, INTEREST RATE, INTERNATIONAL BANK, INTERNATIONAL COMMUNITY, INTERNATIONAL TRADE, INVESTING, KNOWLEDGE DEVELOPMENT, KNOWLEDGE DIFFUSION, LABOR FORCE, LIBERALIZATION OF TRADE, LOW-INCOME COUNTRIES, MARGINAL COST, MARGINAL UTILITY, MARGINAL VALUE, MARKET ACCESS, MARKET PRICE, MARKET SIZE, MIGRATION, MULTILATERAL ORGANIZATIONS, NATIONAL INCOME, NATURAL RESOURCE, NATURAL RESOURCES, NEGATIVE EXTERNALITIES, NEGATIVE EXTERNALITY, NUMBER OF WORKERS, OPEN ECONOMY, OPPORTUNITY COST, OPTIMIZATION, PARTIAL EQUILIBRIUM ANALYSIS, PER CAPITA INCOME, POLICY DIALOGUE, POLICY RESEARCH, POLICY RESEARCH WORKING PAPER, POLITICAL ECONOMY, POPULATION DYNAMICS, POSITIVE PRODUCTION, PRICE INCREASES, PRODUCTION FUNCTIONS, PRODUCTIVE ASSETS, PROGRESS, PROPERTY RIGHTS, RATE OF GROWTH, RATE OF RETURN, RATE OF RETURN ON CAPITAL, RATE OF RETURN TO CAPITAL, REAL INCOME, REGULATORY SYSTEMS, REMITTANCES, RESOURCE DEPLETION, RESOURCE USE, RESPECT, RURAL AREAS, SAVINGS, STOCK OF CAPITAL, TAX, TAX REVENUES, TOTAL FACTOR PRODUCTIVITY, TOTAL OUTPUT, TRADE BALANCE, TRADE LIBERALIZATION, TRADE POLICIES, TRADE POLICY, TRADE REGIME, TRADE TAX, TRADE TAXES, UTILITY FUNCTION, VALUE OF OUTPUT, WATER RESOURCES, WATER SUPPLIES, WORLD ECONOMY, WORLD MARKET, WORLD TRADE