THE COST OF TRADE DISRUPTIONS AT DIFFERENT STAGES OF DEVELOPMENT Journal Articles

abstract

• AbstractWe study trade disruptions at different stages of development in a two‐country, three‐sector model of Spain and United Kingdom from 1850 to 2000. The impact of trade disruptions depends on trade openness and the productivity gap between countries. A trade collapse today (more openness, less gap) comparable to the Inter‐War Trade Collapse (IWTC) decreases the capital stock threefold (12% instead of 4%) and lifetime consumption fourfold (1.58% instead of 0.37%). Capital accumulation amplifies the cost of trade disruptions. The IWTC promoted Spanish industrialization, while the opposite would be true today.

authors

• Conesa, Juan Carlos
• Delventhal, Matthew J
• Pujolas Fons, Pau Salvador
• Raveendranathan, Gajendran

status

• published 

publication date

• August 2024

has subject area

• 14 Economics (FoR)
• Economics (Science Metrix)

published in

• International Economic Review  Journal

keywords

• BREXIT
• Business & Economics
• DEMAND
• Economics
• GROWTH
• IMPACT
• INVESTMENT
• MODEL
• PATTERN
• STRUCTURAL-CHANGE
• Social Sciences
• TECHNOLOGY

Digital Object Identifier (DOI)

• 10.1111/iere.12690

start page

• 1133

end page

• 1161

volume

• 65

issue

• 3