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This paper studies the role of trading partner' growth and a domestic import tariff in the possibility of growing through trade. To this purpose, a Ricardian model is developed in which a backward economy seeks to increase its long-run growth rate simply by trading with a faster growing partner....
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products with low growth potential on the long-run economic growth. The model shows that, when elasticity of demand for the … product with a lower learning potential is greater than unity, a tariff imposed on this product can shift the demand toward …
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