What does the 3-Goods Model say about a Developing Country's Terms of Trade?
Unizik Journal of Economic Studies, 11(1), 121-127, 2014
8 Pages Posted: 17 Jan 2019
Date Written: March 8, 2014
This paper adds to the literature in the field of development economies; it takes a look at the clear distinction between the advanced economies and the less development economies in terms of their production structures and notes that these stylized distinctions make a case for different approaches for finding solutions to economic shocks and distortions. A model of economic growth in a developing economy with 3 goods: exportable, importable and non-tradable goods is discussed herein as being appropriate for determining the production function of a less developed country, Nigeria inclusive.
Keywords: 3-goods model, advanced economies, dutch disease, less developed, production function, terms of trade
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