International Trade and Economic Development

1964 ◽  
Vol 2 (4) ◽  
pp. 491-511 ◽  
Author(s):  
Nicholas Kaldor
Keyword(s):  
Economic Development ◽  
Low Income ◽  
Income Elasticity ◽  
World Market ◽  
Low Income Countries ◽  
Elasticity Of Demand ◽  
Primary Products ◽  
Manufactured Goods ◽  
Income Elasticity Of Demand ◽  
Volume Of Trade

A Recebt study by the U.N. Secretariat provides ample proof, if further proof were needed, that the problem of the economic development of the low-income countries cannot be solved without these countries becoming not only producers, but also exporters of manufactured goods, on an important scale.1 At present 86 per cent of the exports of the ‘developing countries’2 consists of primary products, and only 14 per cent of manufactured goods. But the world market for primary commodities expands only slowly, owing to the low income elasticity of demand. This is partly due to the low income elasticity of food consumption in the wealthy countries and the rapid growth of their own agricultural production, and partly to economies in the use of materials in industry and the development of synthetics. Since 1938, the volume of trade in manufactures has more than trebled, while the volume of trade in primary products has increased only by two-thirds.

Trade patterns in a globalised world: Brazil as a case of regressive specialisation

2020 ◽  
Vol 44 (3) ◽  
pp. 671-701 ◽  
Author(s):  
André Nassif ◽  
Marta R Castilho
Keyword(s):  
Low Income ◽  
Income Elasticity ◽  
Trade Integration ◽  
High Concentration ◽  
Trade Patterns ◽  
Elasticity Of Demand ◽  
Technological Gap ◽  
Theoretical Predictions ◽  
Manufactured Goods ◽  
Income Elasticity Of Demand

Abstract Globalisation is the extent and intensity with which a country’s production, trade and capital flows are integrated into the world economy. Our focus is on globalisation through international trade. We analyse the main theoretical predictions about the effects of global trade integration on trade patterns between countries of different levels of income and technology and compare this analysis to our investigation of Brazil’s trade integration between 1990 and 2016. Particularly, we investigate whether Brazil’s recent trajectory has been directed to a pattern of regressive specialisation. By regressive specialisation, we refer to that in which both production and export structures are strongly oriented to goods of low technological sophistication and low income elasticity of demand. The recent theoretical literature on technological gaps suggests that when a country enters a rapid pattern of regressive specialisation, a falling-behind trajectory is observed. Our main findings are as follows (i) the technological gap significantly widened for all groups of manufactured goods classified by factor content and technological sophistication; (ii) the income elasticity of demand for Brazilian imports is greater than that for Brazilian exports, implying a falling-behind trajectory of the economy in the past few decades and that growth has been constrained by long-term balance-of-payments equilibrium (Thirlwall’s law); and (iii) there has been a very marked trend of high concentration of Brazilian exports in primary goods, but imports composed of high technologically sophisticated manufactured goods, reinforcing the regressive specialisation of Brazil’s trade pattern in the last decades.

scholarly journals Are Private Markets and Filtering a Viable Source of Low-Income Housing? Estimates from a “Repeat Income” Model

2014 ◽  
Vol 104 (2) ◽  
pp. 687-706 ◽  
Author(s):  
Stuart S. Rosenthal
Keyword(s):  
Low Income ◽  
Income Elasticity ◽  
Rental Housing ◽  
House Price ◽  
Price Inflation ◽  
Elasticity Of Demand ◽  
Income Model ◽  
Filtering Rates ◽  
Income Elasticity Of Demand ◽  
Low Income Housing

While filtering has long been considered the primary mechanism by which markets supply low-income housing, direct estimates of that process have been absent. This has contributed to doubts about the viability of markets and to misplaced policy. I fill this gap by estimating a “repeat income” model using 1985–2011 panel data. Real annual filtering rates are faster for rental housing (2.5 percent) than owner-occupied (0.5 percent), vary inversely with the income elasticity of demand and house price inflation, and are sensitive to tenure transitions as homes age. For most locations, filtering is robust which lends support for housing voucher programs. (JEL R21, R31, R38)

How Much is the Consumption Potential of Citizenized Migrants? — Based on the Estimation of Migrants’ Income Elasticity of Demand in the New Era of China

2020 ◽  
pp. 2050009
Author(s):  
Jie CHENG ◽  
Xi YIN
Keyword(s):  
Economic Development ◽  
Urban Areas ◽  
Income Elasticity ◽  
Household Survey ◽  
Total Consumption ◽  
Registration System ◽  
New Era ◽  
Elasticity Of Demand ◽  
Nationally Representative ◽  
Income Elasticity Of Demand

The economic development and urbanization in China have stepped into a new stage, and the style of migrants’ consumption has changed. We use nationally representative data from China Migrants Dynamic Survey (2010–2017) for the evaluation of migrants’ income elasticity of demand and data from Urban Household Survey for that of local citizens in the new era of China. The results show the following: (1) Migrants’ income elasticity of demand has reached 0.67 since the new era, presenting a sharply rising trend. In 2017, this number rose to 0.72, indicating that the overall consumption behavior of migrants tended to be localized. (2) Compared with the average consumption elasticity of local citizens (around 0.8), migrants’ income elasticity of demand was low, and still had room for improvement. (3) Citizenized migrants play a significant role in stimulating consumption. As estimated with consumption function, if citizenized migrants’ income elasticity of demand converges with that of local citizens, the total consumption will reach 15.8 trillion in 2030, equivalent to 9.3% of GDP of the year. The consumption growth directly driven by citizenized migrants is about 8 trillion yuan, equivalent to 4.7 percentage points of the GDP. Migrants are not only labor forces but also important consumers for urban areas. Therefore, to expand domestic demands and shift economic development paradigm, it is crucial to citizenize migrants as soon as possible by accelerating the construction of new-type urbanization and the reform of household registration system.

Income elasticity of demand for tourism at Fulufjället National Park

2017 ◽  
Vol 24 (1) ◽  
pp. 51-63 ◽  
Author(s):  
Peter Fredman ◽  
Daniel Wikström
Keyword(s):  
National Parks ◽  
Low Income ◽  
National Park ◽  
Income Elasticity ◽  
Tourism Industry ◽  
Elasticity Of Demand ◽  
Income Elasticities ◽  
Tourism Product ◽  
Attraction System ◽  
Income Elasticity Of Demand

National Parks are significant markers in the tourism attraction system and represent an important supply of recreation opportunities for the clients of the nature-based tourism industry. In this study, we analyze income elasticities among visitors from two major nationalities at Fulufjället National Park (FNP)—a cross-boundary park between Sweden and Norway—to see if this tourism product is a luxury or not. Modeling demand with a Tobit model, we find that visiting this National Park is close to a luxury, but results also show that elasticities differ across both income and nationality: FNP is more likely to be a luxury good among low-income Germans and high-income Swedes. The article concludes with a discussion on policy and management implications from these results.

scholarly journals Nonlinearity between CO2 Emission and Economic Development: Evidence from a Functional Coefficient Panel Approach

2020 ◽  
Vol 12 (24) ◽  
pp. 10258
Author(s):  
Kyungsik Nam ◽  
Sungro Lee ◽  
Hocheol Jeon
Keyword(s):  
Economic Development ◽  
Low Income ◽  
Co2 Emission ◽  
Income Elasticity ◽  
Low Income Countries ◽  
Nonlinear Relationship ◽  
Panel Model ◽  
Income Coefficient ◽  
Over Time ◽  
Functional Coefficient

This paper investigates the nonlinear relationship between CO2 emission and economic development using a newly developed functional coefficient panel model. In contrast to the existing literature, which suggests that the income elasticity of CO2 emission is parametrically modeled as a function of income, the income coefficient of CO2 emission is set as a function of both income and time. Then, we estimate the income elasticity in a nonparametric way using the country panel data covering 1971–2017. By doing so, we impose richer dynamics to the income elasticity not only over income but also over time. Our empirical results indicate that the income elasticity has decreased over time for high-income countries, whereas it has increased over time for low-income countries.

The environmental Kuznets curve and satiation: a simple static model

2002 ◽  
Vol 7 (3) ◽  
pp. 429-448 ◽  
Author(s):  
Christoph M. Lieb
Keyword(s):  
Environmental Quality ◽  
Low Income ◽  
Environmental Kuznets Curve ◽  
Income Elasticity ◽  
Kuznets Curve ◽  
Income Levels ◽  
Elasticity Of Demand ◽  
Consumer Model ◽  
Income Elasticity Of Demand ◽  
The Relationship

The environmental Kuznets curve (EKC) is a hypothesis stating that pollution rises with income at low income levels but falls at higher ones. We analyse the EKC in a representative consumer model in which pollution is generated by consumption and can be abated. We show that at low income levels no abatement is optimal and pollution increases with income. Once abatement expenditures are positive, we demonstrate that satiation in consumption is not only sufficient to find an EKC, but a tendency to satiation—or in other words the condition that environmental quality is a normal good—is even necessary if we assume a standard functional form for the pollution function. Finally, we reconsider the results of two related models of the literature: We verify that the relationship between the income elasticity of demand for environmental quality and the EKC is ambiguous.(JEL: D62, O40, Q20)

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