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Ricardian-Heckscher-Ohlin model implemented on 75 countries. We simulate two alternative productivity growth scenarios: a … "balanced" one in which China's productivity grows at the same rate in each sector, and an "unbalanced" one in which China …'s comparative disadvantage sectors catch up disproportionately faster to the world productivity frontier. Contrary to a well …
Persistent link: https://www.econbiz.de/10009788687
Ricardian-Heckscher-Ohlin model implemented on 75 countries. We simulate two alternative productivity growth scenarios: a … "balanced" one in which China's productivity grows at the same rate in each sector, and an "unbalanced" one in which China …'s comparative disadvantage sectors catch up disproportionately faster to the world productivity frontier. Contrary to a well …
Persistent link: https://www.econbiz.de/10013076650
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
I propose a framework that takes a set of conceivable outcomes as the primitive and a prediction is defined by identifying a subset on the set of conceivable outcomes. This notion of predictability serves as an organizing principle for characterizing pattern of trade predictions in single...
Persistent link: https://www.econbiz.de/10014216487
in total factor productivity (TFP), but the sources of TFP differences are not well understood. This paper considers the … parameterization, my model shows that conventional TFP measures overestimate fundamental productivity differences by 30%. I then show …
Persistent link: https://www.econbiz.de/10011311201
both developed and developing countries. In both country groups, comparative advantage has become weaker: productivity grew …
Persistent link: https://www.econbiz.de/10010425622
Almost 80 percent of capital goods production in the world is concentrated in 10 countries. Poor countries import most of their capital goods. We argue that international trade in capital goods has quantitatively important effects on economic development through two channels: (i) capital...
Persistent link: https://www.econbiz.de/10013033575
In recent decades, the international division of labor expanded rapidly in course of globalization. In this context, highly developed countries specialized on (human) capital intensively manufactured goods and increasingly sourced parts and components from lowwage countries. Since this should be...
Persistent link: https://www.econbiz.de/10009126526
between trade and productivity. This is the second elementary proposition …
Persistent link: https://www.econbiz.de/10013157135
This paper develops a dynamic Heckscher Ohlin Samuelson model with sector-specific human capital and overlapping generations to characterize the dynamics and welfare implications of gradual labor market adjustment to trade. Our model is tractable enough to yield sharp analytic results, that...
Persistent link: https://www.econbiz.de/10013007387