Choi, E. Kwan; Beladi, Hamid

Pacific Economic Review Vol. 11 (2006): 383-94.

This paper investigates the effects of population growth and capital accumulation on trade and welfare. In the absence of a terms of trade effect, an population increase reduces the standard of living and causes a reduction in welfare. An increase in population causes deterioration in the terms of trade of a labour abundant country, whereas capital accumulation improves them, regardless of the source of growth. Moreover, an increase in the Southﾒs population is immiserizing.