How Does Industrialization Affect the Structure of International Trade? the Japanese Experience in the Pacific Basin, 1975-85
This paper provides a theoretical model to address the issue of how industrialization affects the structure of international trade. Considering both horizontal and vertical product differentiation, the model shows that intra-industry trade increases when product quality improvement emerges in a deve...
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| Format: | eBook |
| Language: | English |
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Washington, D.C.
International Monetary Fund
1994
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| Series: | IMF Working Papers
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| Collection: | International Monetary Fund - Collection details see MPG.ReNa |
| Summary: | This paper provides a theoretical model to address the issue of how industrialization affects the structure of international trade. Considering both horizontal and vertical product differentiation, the model shows that intra-industry trade increases when product quality improvement emerges in a developing country and when a difference in relative factor endowments between a developed and a developing countries shrinks. To promote understanding of the conclusions of the model, the paper also uses actual trade data between Japan and Indonesia and between Japan and Korea |
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| Physical Description: | 40 pages |
| ISBN: | 9781451851779 |