Trade Patterns Among Industrial Countries: Their Relationship to Technology Differences and Capital Mobility

Author/Editor:

Mika Saito

Publication Date:

February 1, 2004

Electronic Access:

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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 compares two alternative measures of technology differences across industrial countries during 1970-92: one measures differences in labor productivity (the Ricardian measure), and the other differences in total factor productivity (the Hicksian measure). The distinction between the two measures is important to the extent that trade patterns are inconsistent with comparative advantage revealed by the Hicksian measure, but not necessarily with that by the Ricardian measure. The distinction becomes more important in the period with high capital mobility across countries.

Series:

Working Paper No. 2004/023

Subject:

Comparative advantage Economic sectors International trade Labor Labor costs Manufacturing Technology Trade balance

English

Publication Date:

February 1, 2004

ISBN/ISSN:

9781451844078/1018-5941

Stock No:

WPIEA0232004

Pages:

31

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