Country size and trade in intermediate and final goods

Soo, Kwok Tong (2018) Country size and trade in intermediate and final goods. The World Economy, 41 (2). pp. 634-652. ISSN 0378-5920

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This paper documents a negative relationship between country size and the share of final consumption goods in total exports. A model is developed, based on the division of labour and comparative advantage, to explain this relationship. Labour is used to produce traded intermediate inputs which are used in the production of traded final goods. Large countries gain relatively more from comparative advantage than from the division of labour, while the opposite is true for small countries. As in the data, large countries export a smaller share of final goods and a larger share of intermediate goods than small countries. It is shown that the model developed in the paper yields the same results as a model based on monopolistic competition.

Item Type:
Journal Article
Journal or Publication Title:
The World Economy
Additional Information:
This is the peer reviewed version of the following article: SSoo KT. Country size and trade in intermediate and final goods. World Econ. 2018;41:634–652. which has been published in final form at This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.
Uncontrolled Keywords:
?? country sizedivision of labourcomparative advantagegains from tradeintermediate goods tradeeconomics, econometrics and finance(all)financeeconomics and econometricspolitical science and international relationsaccountingf11discipline-based research ??
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Deposited On:
29 Jun 2017 09:08
Last Modified:
04 Jul 2024 23:44