English, Article edition: GOVERNMENT SPENDING ON PUBLIC GOODS, SPECIALIZATION-BASED EXTERNAL ECONOMIES AND PATTERN OF TRADE SAJID ANWAR

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Bookmark: http://trove.nla.gov.au/version/131980
Physical Description
  • article
Language
  • English

Edition details

Title
  • GOVERNMENT SPENDING ON PUBLIC GOODS, SPECIALIZATION-BASED EXTERNAL ECONOMIES AND PATTERN OF TRADE
Author
  • SAJID ANWAR
Physical Description
  • article
Notes
  • This paper examines the link between government spending on a public good and pattern of trade in the presence of specialization-based external economies. The results presented in this paper are based on a simple model of an economy that produces one industrial, one agricultural, one public good and a large number of varieties of professional services. It is shown that, when the agricultural and the public goods are non-traded, the country where government spending is relatively large is a net-exporter of varieties of professional services; if varieties of professional services are equally (or more) capital intensive as compared to the industrial good. When the public good and varieties of professional services are non-traded, the country where government spending is relatively large may export the industrial good in exchange for the agricultural good; if the combined capital intensity of professional services and the industrial good is greater than the capital intensity of the agricultural good and the size of specialization-based external economies is sufficiently small.
  • Government spending on public goods, specialization-based external, economies, pattern of trade
  • RePEc:wsi:serxxx:v:51:y:2006:i:01:p:19-30
Language
  • English
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