Research Article
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The Impact of Imported Energy and Goods Prices on Growth and Trade Balance of a Small Open Economy

Year 2017, Volume: 2 Issue: 2, 99 - 116, 30.06.2017
https://doi.org/10.25229/beta.286304

Abstract

This study
builds a growth model of a small open economy with imported energy and goods in
a perfectly competitive economy. The economy is composed of one industrial sector
and one service sector. The economy is endowed with constant labor and land. The
growth mechanism is basically neoclassical in the sense that the main
determinant of growth is endogenous wealth. This study is mainly concerned with
the effects of changes in capital cost, energy price and price of imported
goods on trade balance, price of services, land rent, and path of economic growth.
The comparative dynamic analysis provides some insights into the impact of exogenous
shocks on the national economy.


References

  • Backus, D.K. and Crucini, M.J. (2000) Oil Prices and the Terms of Trade. Journal of International Economics 50, 185-213.
Year 2017, Volume: 2 Issue: 2, 99 - 116, 30.06.2017
https://doi.org/10.25229/beta.286304

Abstract

References

  • Backus, D.K. and Crucini, M.J. (2000) Oil Prices and the Terms of Trade. Journal of International Economics 50, 185-213.
There are 1 citations in total.

Details

Subjects Business Administration
Journal Section x
Authors

Wei-Bin Zhang

Publication Date June 30, 2017
Submission Date January 18, 2017
Acceptance Date May 11, 2017
Published in Issue Year 2017 Volume: 2 Issue: 2

Cite

APA Zhang, W.-B. (2017). The Impact of Imported Energy and Goods Prices on Growth and Trade Balance of a Small Open Economy. Bulletin of Economic Theory and Analysis, 2(2), 99-116. https://doi.org/10.25229/beta.286304