Trade and endogenous product structures

This paper presents a simple model that is able to account for three stylised facts about international trade. First, splicing of value-adding promotes trade in the abundant factor of an economy. Second, trade in intermediate inputs rises as costs of such trade fall but that free trade is not sufficient to eradicate unemployment of the abundant factor. Third, productivity growth is lower in labour-abundant economies than in the capital-abundant economies.

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Year of publication:	2001
Authors:	Chand, Satish
Institutions:	Crawford School of Public Policy, Australian National University

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Extent:	application/pdf
Series:	International and Development Economics Working Papers.
Type of publication:	Book / Working Paper
Notes:	9 pages
Classification:	F16 - Trade and Labor Market Interactions ; F19 - Trade. Other
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005464908