TRANSPORT COSTS AND IMMISERIZING GROWTH UNDER VARIABLE RETURNS TO SCALE

This paper investigates the conditions under which a growing economy which is small in world markets for tradable goods may experience immiserization when international trade requires domestically supplied transport services produced under conditions of variable returns to scale. It is shown that factor accumulation or technical progress, including shipping innovations, may lower real income if growth is export-biased and the transport sector exhibits decreasing returns to scale, or if growth is import-biased and the transport sector exhibits increasing returns to scale. (Author/TRRL)

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Filing Info

  • Accession Number: 00492752
  • Record Type: Publication
  • Source Agency: Transport Research Laboratory
  • Files: ITRD, TRIS, ATRI
  • Created Date: Mar 31 1990 12:00AM