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Trade and endogenous production structures

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Date

2001

Authors

Chand, Satish

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Volume Title

Publisher

Crawford School of Economics and Government, The Australian National University

Abstract

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.

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Citation

Chand, S. (2001). Trade and endogenous production structures. International and Development Economics Paper 01-7. Canberra, ACT: Crawford School of Economics and Government, The Australian National University.

URI

http://hdl.handle.net/10440/1232

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Other Publications by Crawford School of Public Policy

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Working/Technical Paper

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Open Access

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Restricted until

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