How Does Industrialization Affect the Structure of International Trade? the Japanese Experience in the Pacific Basin, 1975-85
August 1, 1994
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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.
Subject: Agricultural commodities, Commodities, Development, Economic sectors, Exports, Imports, Industrialization, International trade, Manufacturing
Keywords: Agricultural commodities, developing country, East Asia, Exports, IIT index, Imports, Industrialization, industry index, industry trade, intra-industry trade, manufactures aggregate, Manufacturing, trade volume, WP
Pages:
40
Volume:
1994
DOI:
---
Issue:
095
Series:
Working Paper No. 1994/095
Stock No:
WPIEA0951994
ISBN:
9781451851779
ISSN:
1018-5941
Notes
Study based on actual trade data between Japan and Indonesia and between Japan and Korea.
