Open AccessLEARNING BY DOING IN THE PRESENCE OF AN OPEN ACCESS RENEWABLE RESOURCE: IS GROWTH SUSTAINABLE?
Author(s) -
McAUSLAND CAROL
Publication year - 2005
Publication title -
natural resource modeling
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.28
H-Index - 32
eISSN - 1939-7445
pISSN - 0890-8575
DOI - 10.1111/j.1939-7445.2005.tb00148.x
Subject(s) - autarky , natural resource , resource (disambiguation) , renewable resource , open economy , economics , natural resource economics , welfare , sustainable development , renewable energy , market economy , ecology , monetary economics , computer science , computer network , biology , exchange rate
. We examine the relationship between growth, resource abundance and trade when the natural resource is renewable and open access and there is inter‐industry learning by doing. We find growth is not sustainable in the closed economy and can be sustained in the open economy only so long as the labor forced engaged in resource extraction shrinks over time. Comparisons of steady state welfare in autarky and free trade reveal that for very high or low world prices of the resource‐based good, it is possible for the economy to gain from trade. However if the price is intermediate, it may instead lose.