Factor Endowments, Product Differentiation, and International Trade PDF Download

Author: Johan Torstensson
Publisher: Department of Economics University of Lund
ISBN: 9789175041261
Category : Commerce
Languages : en
Pages : 152

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Author: Mirela Keuschnigg
Publisher: Springer Science & Business Media
ISBN: 3642502121
Category : Business & Economics
Languages : en
Pages : 160

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Book Description
Traditional trade theory explains trade only by differences between countries, notably differences in their relative endowments of factors of production. It suggests an inverse relationship between the similarity of countries and the volume of trade between them. The Heckscher-Ohlin (HO) factor propor tions theory derives the determinants of comparative advantage in a world of "two-ness" (two goods, two factors, two countries). It predicts that each country will export that good which uses the country's abundant factor rel atively most intensively. The literature on trade offers an impressive number of studies based on the HO theory. The main methodological problems en countered in the literature are: first, the appropriate formulation of the HO theorem in a multi-factor, multi-good and multi-country framework; second, proper tests of the HO theory and proper links of the theory to empirical analysis. The relevance of the HO theory began to be questioned when important facts of modern international trade proved to be inconsistent with its theoretical framework. Leontief (1953) tested the factor proportions theory, using the US data for 1947, and found that the US had more labor-intensive exports than imports, which is opposed to both perceptions and estimations of factor endowments. The Leontief Pamdoxcreated doubt as to whether or not actual trade patterns and factor endowments are related as predicted by theory, and caused many controversial discussions with regard to the proper empirical implementation of the factor proportions theory.

Author: P. Lloyd
Publisher: Springer
ISBN: 0230285988
Category : Business & Economics
Languages : en
Pages : 313

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An agenda-setting contribution to the field of intra-industry trade. P.J. Lloyd and Hyun-Hoon Lee have assembled an international cast of contributors to offer a selection of models examining the nature of intra-industry trade in several new areas of trade theory, in addition to empirical studies and analysis of much new data in trade patterns. This volume provides an authoritative new treatment of the theory, measurement and testing of the subject of intra-industry trade.

Author: David Hummels
Publisher:
ISBN:
Category :
Languages : en
Pages : 12

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Author: Peter John Lloyd
Publisher: Edward Elgar Publishing
ISBN:
Category : Business & Economics
Languages : en
Pages : 584

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Book Description
This authoritative new collection presents a selection of previously published seminal articles that have led to the development of intra-industry trade theory and empirical research. Parts I and II cover the pioneering research in the 1960s and a number of models of intra-industry trade that were developed from 1979 to the present day. Parts III and IV look at the empirical research problems in the choice of measure of intra-industry trade and empirical studies that seek to identify the nature of this trade. Part V deals with the role of the multinational corporation and part VI completes the collection with articles that look at extensions to asset markets and applications to other problems such as the geography of trade and rules of origin. Intra-Industry Trade will be an invaluable source of reference to all international trade economists and libraries specialising in this area.

Author: Sayuri Shirai
Publisher: International Monetary Fund
ISBN: 1451851774
Category : Business & Economics
Languages : en
Pages : 40

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This paper provides a theoretical model to address the issue of how industrialization affects the structure of international trade. Considering both horizontal and vertical product differentiation, the model shows that intra-industry trade increases when product quality improvement emerges in a developing country and when a difference in relative factor endowments between a developed and a developing countries shrinks. To promote understanding of the conclusions of the model, the paper also uses actual trade data between Japan and Indonesia and between Japan and Korea.

Author: P.K.M. Tharakan
Publisher: Springer
ISBN: 1349104647
Category : Business & Economics
Languages : en
Pages : 207

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Book Description
This text contains theoretical contributions and analysis by a group of leading economists who examine the changes that have taken place in the field of international trade in recent years and attempt to relate recent developments in intra-industry trade to conventional trade theory.

Author: Marina von Neumann Whitman
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 40

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Author: Jitendralal Borkakoti
Publisher: Bloomsbury Publishing
ISBN: 1349270148
Category : Business & Economics
Languages : en
Pages : 617

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Book Description
A rigorous and comprehensive text dealing primarily with the determinants of the pattern of trade gains from trade and trade policy. Spanning the old theories (the Ricardian hypothesis, the static and dynamic Heckscher-Ohlin model, the neofactor proportions and the neotechnology theories) it also contains the new theories (including various models of intra-industry trade and the dynamic models of endogenous growth and trade). Gains from trade and trade policy issues are comprehensively analysed. The various theories are presented verbally, geometrically and mathematically.

Author: Paul Krugman
Publisher: MIT Press
ISBN: 9780262610957
Category : Business & Economics
Languages : en
Pages : 298

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Book Description
Over the past decade, a small group of economists has challenged traditional wisdom about international trade. Rethinking International Trade provides a coherent account of this research program and traces the key steps in an exciting new trade theory that offers, among other possibilities, new arguments against free trade. Over the past decade a small group of economists has challenged traditional wisdom about international trade. Rethinking International Trade provides a coherent account of this research program and traces the key steps in an exciting new trade theory that offers, among other possibilities, new arguments against free trade. Krugman's introduction is a valuable guide to research that has delved anew into the causes of international trade and reopened basic questions about the international pattern of specialization, the effects of protectionism, and what constitutes an optimal trade policy. In the four sections that follow, he takes a revisionary look at the causes of international trade, and discusses growth and the role of history, technological change and trade, and strategic trade policy.