Harrigan, James; Deng, Haiyan - National Bureau of Economic Research (NBER) - 2008
China's trade pattern is influenced not just by its overall comparative advantage in labor intensive goods but also by … advantage as well as the overall volume of trade. The model predicts that China has a comparative advantage in heavy goods in … geography. We use two variants of the Eaton-Kortum (2002) model to study China's local comparative advantage. The theory …