How Does Industrialization Affect the Structure of International Trade? the Japanese Experience in the Pacific Basin, 1975-85

Author/Editor:

Sayuri Shirai

Publication Date:

August 1, 1994

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

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.

Series:

Working Paper No. 94/95

Notes:

Study based on actual trade data between Japan and Indonesia and between Japan and Korea.

English

Publication Date:

August 1, 1994

ISBN/ISSN:

9781451851779/1018-5941

Stock No:

WPIEA0951994

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

40

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