How Does Industrialization Affect the Structure of International Trade? the Japanese Experience in the Pacific Basin, 1975-85
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. 1994/095
Subject:
Agricultural commodities Commodities Development Economic sectors Exports Imports Industrialization International trade Manufacturing
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
Pages:
40
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