Open Economies Review

, Volume 4, Issue 3, pp 287–301 | Cite as

International transmission of government spending on industries

  • Sajid Anwar


This paper develops a simple two-country general equilibrium model with government spending on industries. International transmission of government spending is examined in the short run and the long run.

Key words

international factor mobility government spending on industries 


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. Abe, K. (1990) “Public Input as a Determinant of Trade,”Canadian Journal of Economics 23, 400–407.Google Scholar
  2. Barro, R. (1990) “Government Spending in a Simple Model of Endogenous Growth,”Journal of Political Economy 98, S103-S125.Google Scholar
  3. Bhagwati, J. and T. Srinivasan (1983)Lectures on International Trade. Cambridge: MIT Press.Google Scholar
  4. Devereux, M. (1988) “Non-Traded Goods and the International Transmission of Fiscal Policy,”Canadian Journal of Economics 21, 265–278.Google Scholar
  5. Durlauf, S. and R. Staiger (1990) “Compositional Effects of Government Spending in a Two-Country, Two-Sector Production Model,”Journal of International Economics, 28, 333–347.Google Scholar
  6. Frenkel, J. and A. Razin (1987)Fiscal Policies and the World Economy. Cambridge: MIT Press.Google Scholar
  7. Grossman, H. and R. Lucas (1975) “The Macro-Economic Effects of Productive Public Expenditures,”The Manchester School 46, 162–170.Google Scholar
  8. Itoh, M. and T. Negishi (1989)Disequilibrium Trade Theories. London: Harwood Academic Publishers.Google Scholar
  9. Kemp, M. and M. Ohyama (1978) “On the Sharing of Trade Gains by Resource-Poor and Resource-Rich Countries,”Journal of International Economics 8, 93–115.Google Scholar
  10. Manning R. and J. McMillan (1979) “Public Intermediate Goods, Production Possibilities, and International Trade,”Canadian Journal of Economics 12, 243–257.Google Scholar
  11. Manning, R. and J. McMillan (1982) “The Scale Effect of Public Goods on Production Possibility Sets.” In M. Kemp (ed.),Production Sets, New York: Academic Press.Google Scholar
  12. McMillan, J. (1978) “A Dynamic Analyses of Public Intermediate Goods Supply in Open Economy,”International Economic Review 19, 665–677.Google Scholar
  13. Negishi, T. (1973) “The Excess of Public Expenditures on Industries,”Journal of Public Economics 2, 231–240.Google Scholar
  14. Ram, R. (1986) “Government Size and Economic Growth: A New Framework and Some Evidence from Cross-Section and Time-Series Data,”American Economic Review 76, 191–203.Google Scholar
  15. Sandmo, A. (1972) “Optimality Rules for the Provision of Collective Factors of Production,”Journal of Public Economics 1, 149–157.Google Scholar
  16. Shapiro, C. and J. Stiglitz (1984) “Equilibrium Unemployment as a Worker Discipline Device,”American Economic Review 74, 433–444.Google Scholar
  17. Svensson, L. (1987) “International Fiscal Policy Transmission,”Scandinavian Journal of Economics 89, 305–334.Google Scholar
  18. Weiss, A. (1980) “Job Queues and Layoffs in Labor Markets with Flexible Wages,”Journal of Political Economy 88, 526–538.Google Scholar
  19. Yellen, J. (1984) “Efficiency Wage Models of Unemployment,”American Economic Review 74, 200–205.Google Scholar

Copyright information

© Kluwer Academic Publishers 1993

Authors and Affiliations

  • Sajid Anwar
    • 1
    • 2
  1. 1.Northern Territory UniversityAustralia
  2. 2.the University of British ColumbiaCanada

Personalised recommendations