How Are Welfare Levels Affected by Changing Transaction Efficiencies? -A Theoretical Model for Dual Opening up and Unbalanced Development

Journal Title: Scholars Journal of Economics, Business and Management - Year 2015, Vol 2, Issue 5

Abstract

Abstract: In this theoretical study, we revisit the old Ricardian model of comparative advantage. Following an inframarginal methodology, we build an extended theoretical model based on the concepts of comparative advantage and transaction efficiency to explain development and inequality in developing economies. According to our model, an increase in domestic transaction efficiency reduces inequality within a developing economy while an increase in international transaction efficiency enhances the overall welfare level in a developing economy. The results of our model may have important policy implications for developing economies in their policy-making. Keywords: transaction efficiency; comparative advantage; inframarginal analysis.

Authors and Affiliations

Yanqing Jiang

Keywords

Related Articles

Process to Determine Innovation Types Within Organizations

Abstract:Innovation is a highly-used term today which can be found in almost all branches of economy. Therefore, most organizations are developing innovation strategies to increase performance and boost profits. Especial...

Working Capital Management of Indian Automobile Industry – With Special Reference to Selected Automobile Companies

Abstract:The study has been undertaken to analyse working capital management of nine automobile companies in India for the study period of ten years from 2005-06 to 2014-15. The results of the study shows that Mahindra...

The Impact of Audit Technology Usage and Corporate Governance on Financial Reporting Timeliness

This study examines the impact of audit technology usage and corporate governance as well as the factors that affect on financial reporting timeliness in the Jordanian listed company in Amman Stock Exchange in the Kingdo...

Corporate Training Programme and Full Fledged Universities for better Organizational Practice: Challenges and Opportunities

Information and knowledge gathering now become easy and affordable. Today we can get knowledge from informal sources and educational institute and training programme large manner. Corporate training is one of the importa...

The Changing Paradigm of Monetary Management in Emerging Economies – A Case of India

Monetary management through monetary policy, in order to achieve the macroeconomic policy objectives of sustained economic growth, control of inflation and financial stability, remains a subject which still baffles econ...

Download PDF file
  • EP ID EP384658
  • DOI -
  • Views 78
  • Downloads 0

How To Cite

Yanqing Jiang (2015). How Are Welfare Levels Affected by Changing Transaction Efficiencies? -A Theoretical Model for Dual Opening up and Unbalanced Development. Scholars Journal of Economics, Business and Management, 2(5), 535-549. https://europub.co.uk/articles/-A-384658