{
  "title": "How Does Industrialization Affect the Structure of International Trade? the Japanese Experience in the Pacific Basin, 1975-85",
  "publication": "IMF Working Papers, August 1, 1994",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/30/how-does-industrialization-affect-the-structure-of-international-trade-the-japanese-1296",
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  "summary": "This paper provides a theoretical model to address the issue of how industrialization affects the structure of international trade.",
  "sections": [
    {
      "heading": "Summary / Main Findings",
      "content": "- The paper provides a theoretical model addressing how industrialization affects the structure of international trade.\n- Considering both horizontal and vertical product differentiation, the model shows that intra-industry trade increases when:\n  - product quality improvement emerges in a developing country, and\n  - a difference in relative factor endowments between a developed and a developing country shrinks.\n- To promote understanding of the model’s conclusions, the paper uses actual trade data between Japan and Indonesia and between Japan and Korea."
    },
    {
      "heading": "Theoretical Framework",
      "content": "- Model incorporates horizontal and vertical product differentiation to analyze shifts in trade structure.\n- Key mechanism: improvements in product quality in developing countries raise intra-industry trade.\n- Key mechanism: convergence (shrinkage) in relative factor endowments between developed and developing countries raises intra-industry trade."
    },
    {
      "heading": "Empirical Evidence",
      "content": "- Empirical analysis uses actual trade data between:\n  - Japan and Indonesia, and\n  - Japan and Korea.\n- Aim of empirical section: illustrate and support the model’s conclusions through observed trade flows in the Pacific Basin for 1975-85."
    },
    {
      "heading": "Policy-Relevant Implications (derived from model and evidence)",
      "content": "- Industrialization strategies that promote product quality improvement in developing countries can increase intra-industry trade with developed partners.\n- Policies that influence relative factor endowments (e.g., skill accumulation, capital accumulation) and lead to convergence with developed countries can alter the composition of trade toward greater intra-industry exchange."
    },
    {
      "heading": "Publication and Metadata",
      "content": "- Author: Sayuri Shirai\n- Date: August 1, 1994\n- Series: Working Paper No. 1994/095\n- Issue: 095\n- Volume: 1994\n- Pages: 40\n- Stock No: WPIEA0951994\n- ISBN: 9781451851779\n- ISSN: 1018-5941\n- Subjects: Agricultural commodities, Commodities, Development, Economic sectors, Exports, Imports, Industrialization, International trade, Manufacturing\n- 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\n\nSource: IMF Working Papers — \"How Does Industrialization Affect the Structure of International Trade? the Japanese Experience in the Pacific Basin, 1975-85\", Sayuri Shirai, August 1, 1994, Working Paper No. 1994/095.\n\n---\n\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/30/how-does-industrialization-affect-the-structure-of-international-trade-the-japanese-1296"
    }
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    "Authors: Sayuri Shirai",
    "Published: August 1, 1994",
    "Series: IMF Working Papers",
    "The paper provides a theoretical model addressing how industrialization affects the structure of international trade.",
    "Considering both horizontal and vertical product differentiation, the model shows that intra-industry trade increases when:",
    "To promote understanding of the model’s conclusions, the paper uses actual trade data between Japan and Indonesia and between Japan and Korea.",
    "Model incorporates horizontal and vertical product differentiation to analyze shifts in trade structure.",
    "Key mechanism: improvements in product quality in developing countries raise intra-industry trade.",
    "Key mechanism: convergence (shrinkage) in relative factor endowments between developed and developing countries raises intra-industry trade.",
    "Empirical analysis uses actual trade data between:",
    "Aim of empirical section: illustrate and support the model’s conclusions through observed trade flows in the Pacific Basin for 1975-85.",
    "Industrialization strategies that promote product quality improvement in developing countries can increase intra-industry trade with developed partners.",
    "Policies that influence relative factor endowments (e.g., skill accumulation, capital accumulation) and lead to convergence with developed countries can alter the composition of trade toward greater intra-industry exchange.",
    "Author: Sayuri Shirai",
    "Date: August 1, 1994",
    "Series: Working Paper No. 1994/095",
    "Issue: 095",
    "Volume: 1994",
    "Pages: 40",
    "Stock No: WPIEA0951994",
    "ISBN: 9781451851779",
    "ISSN: 1018-5941",
    "Subjects: 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"
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