Immiserizing growth is the special case in which economic growth actually makes a country worse off than before. If the country is big enough to influence world prices and if demand for the good is inelastic enough higher productivity can actually make a country worse off. Our expanded theory of comparative advantage is designed to highlight this problem. What is the nature of this problem and what assumptions lead to it in the model?

1 answer

I think on this question, Google is your friend.

Start here:
http://en.wikipedia.org/wiki/Immiserizing_growth

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