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The trade literature often treats countries as dimensionless points, which is a strong assumption. Agglomeration or lumpiness of production factors within countries can affect the national pattern of trade. In this paper we analyze comparative advantage patterns for 22 cities and 4 regions for...
Persistent link: https://www.econbiz.de/10012305848
Persistent link: https://www.econbiz.de/10012021581
We illustrate a new source of comparative advantage that is generated by countries' different ability to adjust to technological change. Our model introduces substitution of workers in codifiable (routine) tasks with more efficient machines, a process extensively documented in the labor...
Persistent link: https://www.econbiz.de/10012200350
With global specialization and trade, countries make directly but also indirectly use of the environment via traded goods. Based on the theory of comparative advantages, the Heckscher-Ohlin-Vanek approach, we are using the Ecological Footprint as a broad measure of environmental use because its...
Persistent link: https://www.econbiz.de/10011637772
Based on the Heckscher-Ohlin-Vanek (H-O-V) theory, the paper develops theoretical models that lead to estimating cross-industry equations in a proper way, when allowing for departures from some of the strong assumptions of the H-O theory, such as perfect competition, equal factor unit...
Persistent link: https://www.econbiz.de/10010291053
The Heckscher-Ohlin theory and the Ricardian theory of international commerce traditionally have been treated as separate conceptual frameworks, but a growing body of empirical work is relying on both simultaneously and calls for an integrated theory. This paper combines the Heckscher-Ohlin...
Persistent link: https://www.econbiz.de/10010291054
Sino‐European trade relations have been controversially discussed mainly, if not only, because of the increasing European Union’s bilateral trade deficit with China. As from the European perspective trade with China becomes more important, the structural adjustment process of the Chinese...
Persistent link: https://www.econbiz.de/10003857744
I consider how heterogeneity in capital goods affects international trade patterns, and I show a novel source of comparative advantage: the magnitude of capital goods heterogeneity. Capital goods are heterogeneous in their vintage and productivity, and due to capacity constraints, only...
Persistent link: https://www.econbiz.de/10010533085
We develop a dynamic general equilibrium trade model with comparative advantage, heterogeneous firms, heterogeneous workers and endogenous firm entry to study wage inequality during the adjustment after trade liberalization. We find that trade liberalization increases wage inequality both in the...
Persistent link: https://www.econbiz.de/10011374067
This paper examines the extent of stability, specialisation and divergence in manufacturing industries' export patterns for EU15 countries at both industry and country level, distinguishing between intra and extra EU15 exports as well as different technological categories. Both countrywide and...
Persistent link: https://www.econbiz.de/10009410486