scholarly journals A small open economic growth model with imported goods, tourism, and terms of trade

2018 ◽  
pp. 65-86
Author(s):  
Wei-Bin Zhang
Keyword(s):  
Economic Growth ◽  
Dynamic Analysis ◽  
Growth Model ◽  
Open Economy ◽  
Service Sector ◽  
Small Open Economy ◽  
Terms Of Trade ◽  
Nonlinear Dynamic Model ◽  
Economic Growth Model ◽  
Tourism Economy

This paper constructs an economic growth model of a small open economy with tourism and imported goods in a perfectly competitive economy. The study focuses on the effects of changes in terms of trade, with a preference for imported goods, on the dynamic paths of trade balance and economic growth. The basic framework for modelling a national economy is based on the Solow-Uzawa neoclassical growth model with Zhang’s alternative approach to household behaviour. We build a nonlinear dynamic model with interdependence between economic growth, economic structure, tourism, prices, wealth and income. We provide a computational process to follow the motion of the economic system. Simulation is used to carry out a comparative dynamic analysis of the terms of trade, the propensity to consume imported goods, the rate of interest, the price elasticity of tourism, and the total productivity of the service sector. The comparative dynamic analysis provides some insights into the complexity of the tourism economy.

scholarly journals A chaotic economic growth model and the agricultural share of an output

2005 ◽  
Vol 50 (2) ◽  
pp. 207-216 ◽  
Author(s):  
Vesna Jablanovic
Keyword(s):  
Economic Growth ◽  
Growth Model ◽  
Open Economy ◽  
Agricultural Production ◽  
Small Open Economy ◽  
Total Output ◽  
Economic Growth Model ◽  
Stable Equilibria ◽  
Set Up ◽  
Parameter Values

The agricultural share of a total output generally declines in the process of economic growth. The major reason for this is that consumer demand for food increases only slightly with rising incomes. However, a small, open economy can overcome this constraint to the growth of agricultural production by expanding its net exports. The basic aim of this paper is to set up a chaotic growth model of the gross domestic product that is capable of generating stable equilibria, cycles, or chaos depending on parameter values.

Dynamic analysis in an economic growth model with CES utility function and delay

2020 ◽  
Author(s):  
Ramona Ioana Oprea ◽  
Pater Flavius ◽  
Adina Juratoni ◽  
Olivia Bundau
Keyword(s):  
Economic Growth ◽  
Dynamic Analysis ◽  
Utility Function ◽  
Growth Model ◽  
Economic Growth Model ◽  
Ces Utility Function

scholarly journals BUSINESS CYCLES, GROWTH, AND IMPORTED ENERGY IN A SMALL-OPEN GROWTH MODEL

2018 ◽  
Vol 3 (2) ◽  
pp. 7-21 ◽  
Author(s):  
Wei-Bin Zhang
Keyword(s):  
Business Cycles ◽  
Growth Model ◽  
Open Economy ◽  
Small Open Economy ◽  
Economic Growth Model ◽  
Constant Coefficients ◽  
Open Growth ◽  
Two Sectors ◽  
Neoclassical Growth Theory ◽  
Neoclassical Growth

This paper generalizes an economic growth model proposed by Zhang (2017) by allowing all constant coefficients to be time-dependent. This paper shows existence of business cycles in the generalized model due to periodic shocks. Zhang’s original model is developed for a small open economy with imported energy and imported goods. The economy is composed of two sectors and all markets are perfectly competitive. The economy has fixed land and population. Production side is the same as in neoclassical growth theory, while demand side is modelling with Zhang’s utility and concept of disposable income. We generalize and simulate the model. We demonstrate existence of business cycles due to different exogenous periodic shocks.

Book Reviews

2010 ◽  
Vol 48 (4) ◽  
pp. 1041-1043
Keyword(s):  
Economic Growth ◽  
Labor Supply ◽  
Foreign Aid ◽  
Growth Model ◽  
Open Economy ◽  
Capital Accumulation ◽  
Growth Models ◽  
Small Open Economy ◽  
Basic Model ◽  
The University

Kent P. Kimbrough of Duke University reviews “Capital Accumulation and Economic Growth in a Small Open Economy” by Stephen J. Turnovsky,. The EconLit Abstract of the reviewed work begins “Investigates the process of economic growth in a small open economy and considers whether it is sensitive to the economy’s productive structure. Discusses a basic growth model with fixed labor supply; a basic growth model with endogenous labor supply; transitional dynamics and endogenous growth in one-sector models; two-sector growth models; nonscale growth models; a basic model of foreign aid; and foreign aid, capital accumulation, and economic growth--some extensions. Turnovsky is Castor Chair of Economics at the University of Washington. Index.”

scholarly journals Economic Growth with Social Status, Spirit of Capitalism, and Conspicuous Consumption

2020 ◽  
Vol 9 (1) ◽  
pp. 1-10
Author(s):  
Wei-Bin Zhang
Keyword(s):  
Economic Growth ◽  
Social Status ◽  
Growth Model ◽  
Open Economy ◽  
Wealth Distribution ◽  
Small Open Economy ◽  
Conspicuous Consumption ◽  
Wealth Accumulation ◽  
Spirit Of Capitalism ◽  
Income And Wealth Distribution

The purpose of this study is to introduce social status, conspicuous consumption, and spirit of capitalism into neoclassical growth model. This paper studies a dynamic interdependence between economic growth, economic structural change, income and wealth distribution, social status, conspicuous consumption, and spirit of capitalism in a small-open economy. We build a heterogeneous-households growth model with endogenous wealth accumulation and social status. The dynamics of J-households economy is described by J differential equations. We simulate the motion of the model with three groups of households. We carry out comparative dynamic analysis with regard to some parameters.

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