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Adam Smith is commonly referred to as one of the first who thought of foreign trade in terms of an international division of labour, whereby each country specialises in the production of certain goods. It is argued that he made a strong case for foreign trade on this basis. In this article, I...
Persistent link: https://www.econbiz.de/10012990740
We introduce quality differentiation into a Ricardian model of international trade. We show that (1) quality differentiation allows industrialized countries to be active across the full board of products, complex and simple ones, while developing countries systematically specialize in simple...
Persistent link: https://www.econbiz.de/10012853224
Vertical intra-industry trade accounts for a large share of trade between countries characterized by similar factor endowments. Moreover, it is observed even at a very disaggregated level of statistical classifications, suggesting that the traded products have similar factor intensities. This...
Persistent link: https://www.econbiz.de/10014209969
How does factor accumulation affect the pattern of international specialization and returns to capital? We provide a … structural change in the form of intra-industry specialization. Our findings are consistent with Ventura's hypothesis that growth …
Persistent link: https://www.econbiz.de/10010271800
and nature of specialization has important consequences for liberalizing economies. It is therefore extremely relevant for … those countries pursuing trade liberalization initiatives to know how their specialization profiles would look like under … lower trade costs. This paper examines the impact of trade policy on production specialization patterns in ten Latin …
Persistent link: https://www.econbiz.de/10011294509
Recent research has documented a U-shaped industrial concentration curve over an economy's development path. How far can neoclassical trade theory take us in explaining this pattern? We estimate the production side of the Heckscher-Ohlin model using industry data on 44 developed and developing...
Persistent link: https://www.econbiz.de/10010221543
in these models. In this paper, I provide evidence that vertical specialization is a salient feature in the international … from trade beyond those currently accounted for in standard models. I quantify the gains from vertical specialization … incorporated into many state-of-the-art quantitative trade models, and has been shown to deliver significant additional gains from …
Persistent link: https://www.econbiz.de/10011637447
This paper investigates the nature and pattern of export specialization in Lithuania. The aim of this paper is to … estimate the nature and pattern of Lithuanian export specialization under existing conditions. Seeking to define the nature and … pattern of export specialization, the basic methods of export specialization measurement and the nature and pattern of export …
Persistent link: https://www.econbiz.de/10012011085
on export diversification and specialization, by investigating the extent of export diversification and specialization in …) model to investigate the economy-wide impacts of greater export diversification versus greater export specialization. We … find tentative evidence of a U-shaped relationship between per capita GDP and export specialization. Also, Granger …
Persistent link: https://www.econbiz.de/10010273435
This paper documents the evolution of the international relationships of individual U.S. states along three dimensions: trade, migration, and finance. We examine how specialized or diversified state economies differ in terms of the products they export and with whom they trade, the origins of...
Persistent link: https://www.econbiz.de/10012968002