Endogenous growth, asymmetric trade and resource dependence

Lucas Bretschger, Simone Valente

Research output: Contribution to journalArticlepeer-review

7 Citations (Scopus)


The aggregate income of oil-exporting countries relative to that of oil-poor countries has been remarkably constant in recent decades, despite the existence of structural gaps in productivity growth rates. This stylized fact is rationalized in an endogenous growth model of asymmetric trade where resource-poor and resource-rich economies display productivity differences but stable income shares due to terms-of-trade dynamics. The model yields two testable predictions that deserve empirical scrutiny: (i) the asymmetric impact, between exporters and importers, of national taxes on resource use on income shares and (ii) the inverse relation between terms-of-trade dynamics and total factor productivity growth.
Original languageEnglish
Pages (from-to)301-311
Number of pages12
JournalJournal of Environmental Economics and Management
Issue number3
Early online date4 Aug 2012
Publication statusPublished - Nov 2012


  • Endogenous growth
  • Exhaustible resources
  • International trade

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