Trade and endogenous production structures
This paper presents a simple model that is able to account for three stylised facts about international trade. First, splicing of value-adding promotes trade in the abundant factor of an economy. Second, trade in intermediate inputs rises as costs of such trade fall but that free trade is not sufficient to eradicate unemployment of the abundant factor. Third, productivity growth is lower in labour-abundant economies than in the capital-abundant economies.
|Collections||ANU Crawford School of Public Policy|
|Chand_Trade2001.pdf||108.63 kB||Adobe PDF|
Items in Open Research are protected by copyright, with all rights reserved, unless otherwise indicated.