Immiserizing Growth

  • Takashi Negishi
  • Takashi Negishi
Part of the Advances in Japanese Business and Economics book series (AJBE, volume 2)


Economic growth is generally to be welcomed from the point of view of the welfare of a country. It is particularly so when the growth is due to the capital accumulation rather than the increase in the population. Similarly, international trade is generally considered to raise the level of welfare of a country, i.e., the gains from trade are expected. One plus one may not, however, always make two. It is possible that the combined effect of the economic growth and international trade is to decrease, rather than to increase, the welfare of a country. This possibility was first pointed out by Edgeworth (1894) and then taken up again by Bhagwati (1958) who called such an economic growth the immiserizing growth.


Second best problems Immiserizing Growth Small country Large country Second Best Problems Foreign Investment Tax on the capital earnings 


  1. Bhagwati, J. (1958). Immiserizing growth: A geometrical note. Review of Economic Studies, 25, 201–205.CrossRefGoogle Scholar
  2. Bhagwati, J. (1987). Immiserizing growth. In J. Eatwell, M. Milgate, & P. Newman (Eds.), The new palgrave, vol. 2 (pp. 718–720) London: Macmillan.Google Scholar
  3. Edgeworth, F. Y. (1894). The theory of international values, I. Economic Journal, 4, 35–50.CrossRefGoogle Scholar
  4. Johnson, H. G. (1967). The possibility of income losses from increased efficiency or factor accumulation in the presence of tariffs. Economic Journal, 77, 141–144.CrossRefGoogle Scholar
  5. Kemp, M. C. (1964). The pure theory of international trade. Englewood Cliff, NJ: Prentice-Hall.Google Scholar
  6. Lipsey, R. G., & Lancaster, K. J. (1956–1957). The general theory of the second best. Review of Economic Studies, 24, 11–32.Google Scholar
  7. Negishi, T. (1972). General equilibrium theory and international trade. Amsterdam: North Holland.Google Scholar
  8. Ohlin, B. (1933). Interregional and international trade. Cambridge, MA: Harvard University Press.Google Scholar
  9. Phelps, E. S. (1966). Golden rules of economic growth. New York: Norton.Google Scholar
  10. Smith, M. A. M. (1977). Capital accumulation in the open two-sector economy. Economic Journal, 87, 273–282.CrossRefGoogle Scholar

Copyright information

© Springer Japan 2014

Authors and Affiliations

  • Takashi Negishi
    • 1
  • Takashi Negishi
    • 2
  1. 1.The Japan AcademyTokyoJapan
  2. 2.The University of TokyoTokyoJapan

Personalised recommendations