Stage two opens the economy from stage one to international trade and institutionalizes property rights over the resource. Stage two further expands the neoclassical growth model to include a service sector that specializes in non-extractive services of the resource. These services are exported and there is trade in the consumption good. Property rights holders make endogenous decisions on the level of property rights enforcement. There exists a unique steady state where the natural resource is preserved and property rights are enforced. The level of enforcement is influenced by the terms of trade. High service prices relative to other prices create an incentive to enforce property rights at a higher level. The economy with institutionalized property rights has higher levels of consumption, production, and welfare than either an economy with open access natural resource or an economy without a natural resource endowment.2 Chapter one: growth of an integrated economy of humans and biological resources Abstract: This chapter analyzes ... 2.1 Introduction The relationship between economic growth and natural resources is a topic of continuous great interest.
|Title||:||Essays on Growth of an Integrated Economy of Human and Biological Resources|
|Author||:||Liaila Shamilevna Tajibaeva|
|Publisher||:||ProQuest - 2007|