2026-07-01http://hdl.handle.net/123456789/416106The impacts of faster growth in China and India for Europe are analysed taking into account terms-of-trade effects, second-best welfare impacts and improvements in product quality and variety. More rapid growth in these giants could improve Europe's terms of trade, but second-best effects on energy markets could lower welfare unless these taxes are Pigovian. Whether growth arises from productivity or capital accumulation has important implications, with capital-driven growth involving higher energy and agricultural prices. When quality and variety growth are taken into account, the benefits to Europe are substantially greater. If agricultural protection in emerging Asia increases with growth, the impacts on Europe appear to be adverse but small.World BankCapitalInvestmentCapacity E220Country and Industry Studies of Trade F140Macroeconomic Analyses of Economic Development O110International Linkages to DevelopmentRole of International Organizations O190Measurement of Economic GrowthAggregate ProductivityCross-Country Output Convergence O470Socialist Systems and Transitional Economies: National Income, Product, and ExpenditureMoneyInflation P240Socialist Institutions and Their Transitions: International Trade, Finance, Investment, and Aid P330Journal Article