American Economic Review: Vol. 104 No. 5 (May 2014)

Expand

Quick Tools:

Print Article Summary
Export Citation
Sign up for Email Alerts Follow us on Twitter

Explore:

AER - All Issues

AER Forthcoming Articles

Demand and Defective Growth Patterns: The Role of the Tradable and Non-tradable Sectors in an Open Economy

Article Citation

Hlatshwayo, Sandile, and Michael Spence. 2014. "Demand and Defective Growth Patterns: The Role of the Tradable and Non-tradable Sectors in an Open Economy." American Economic Review, 104(5): 272-77.

DOI: 10.1257/aer.104.5.272

Abstract

This paper examines the underlying structural elements of US growth patterns, pre- and post-crisis. Prior to the recession, the US economy exhibited a defective growth pattern driven by outsized domestic demand. As domestic aggregate demand retreats to more sustainable levels relative to total income, the tradable side of the economy is a catalyst for restoring strong growth. A structural rebalancing is already underway; although it is only a third of the economy, the tradable sector generated more than half of gross gains in value-added since the start of the recovery. However, distributional issues loom on the horizon.

Article Full-Text Access

Full-text Article

Additional Materials

Download Data Set (158.93 KB) | Online Appendix (142.12 KB) | Author Disclosure Statement(s) (79.47 KB)

Authors

Hlatshwayo, Sandile (U CA, Berkeley)
Spence, Michael (NYU)

JEL Classifications

E23: Macroeconomics: Production
E32: Business Fluctuations; Cycles
F43: Economic Growth of Open Economies
G01: Financial Crises


American Economic Review


Quick Tools:

Sign up for Email Alerts

Follow us on Twitter

Subscription Information
(Institutional Administrator Access)

Explore:

AER - All Issues

AER - Forthcoming Articles

Virtual Field Journals


AEA Member Login:


AEAweb | AEA Journals | Contact Us