Soo, K T (2009) Relative endowments and the volume of trade. Journal of Economic Integration, 24 (4). pp. 744-764. ISSN 1225-651XFull text not available from this repository.
This paper provides evidence that the volume of trade may increase as countries’ relative endowments become more similar. A model is developed that can explain this phenomenon. The model is a four-good version of the Davis (1995) Heckscher-Ohlin-Ricardo model of international trade based on technological and factor endowment differences across countries. In the model, trade volumes may increase with greater similarity in relative endowments, because productivity differences across countries mean that countries’ production becomes increasingly specialised the more similar are their relative endowments.
|Journal or Publication Title:||Journal of Economic Integration|
|Uncontrolled Keywords:||international trade ; trade volume ; integrated equilibrium|
|Departments:||Lancaster University Management School > Economics|
|Deposited On:||11 Jul 2011 19:34|
|Last Modified:||27 Apr 2016 00:00|
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