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Trade in Producer Services and Returns Due to Specialization under Monopolistic Competition

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Author Info
Joseph F. Francois

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Abstract

This paper demonstrates that liberalizing trade in services, while yielding efficiency gains associated with comparative advantage, may yield additional gains for both importing and exporting countries because of an increased division of labor. A model is developed in which producer services coordinate and control the specialized members of complex production processes. The model is used to analyze trade in services and its effect on the division of labor and the realization of returns from specialization. This differs from the recent literature on traded services and specialization because of the explicit role introduced for services in the specialization process.

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Publisher Info
Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

Volume (Year): 23 (1990)
Issue (Month): 1 (February)
Pages: 109-24
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Handle: RePEc:cje:issued:v:23:y:1990:i:1:p:109-24

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  1. James R. Markusen & Thomas F. Rutherford & David Tarr, 2000. "Foreign Direct Investments in Services and the Domestic Market for Expertise," NBER Working Papers 7700, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  2. Sajid Anwar, 2000. "Protection, international factor mobility and monopolistic competition," Finnish Economic Papers, Finnish Society for Economic Research, vol. 13(2), pages 116-128, Autumn. [Downloadable!]
  3. Joseph F. Francois, 1993. "Explaining The Pattern Of Trade In Producer Services," International Economic Journal, Korean International Economic Association, vol. 7(3), pages 23-31, October. [Downloadable!] (restricted)
  4. Joseph F. Francois, 1995. "Dynamic Effects Of Trade In Financial Services," International Economic Journal, Korean International Economic Association, vol. 9(3), pages 1-14, October. [Downloadable!] (restricted)
  5. Joseph F. Francois & Lutger Schuknecht, 1999. "Trade in Financial Services: Procompetitive Effects and Growth Performance," Tinbergen Institute Discussion Papers 99-028/2, Tinbergen Institute. [Downloadable!]
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  6. Barbara Dluhosch & Michael Burda, 2000. "Cost Competition, Fragmentation and Globalization," CESifo Working Paper Series CESifo Working Paper No. , CESifo GmbH. [Downloadable!]
    Other versions:
  7. Miles K. Light, 2004. "FTAA and Service Liberalization in Colombia," REVISTA DESARROLLO Y SOCIEDAD, UNIVERSIDAD DE LOS ANDES-CEDE. [Downloadable!]
  8. Mattoo, Aaditya & Hoekman, Bernard, 2008. "Services trade and growth," Policy Research Working Paper Series 4461, The World Bank. [Downloadable!]
  9. Francisco L. Rivera-Batiz & Luis A. Rivera-Bat1z, 1992. "Europe 1992 And The Liberalization Of Direct Investment Flows: Services Versus Manufacturing," International Economic Journal, Korean International Economic Association, vol. 6(1), pages 45-57, April. [Downloadable!] (restricted)
  10. Markusen, James R. & Strand, Bridget, 2007. "Trade in Business Services in General Equilibrium," CEPR Discussion Papers 6080, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  11. Richard E. Baldwin & Frédéric Robert-Nicoud, 2007. "Offshoring: General Equilibrium Effects on Wages, Production and Trade," CEP Discussion Papers dp0794, Centre for Economic Performance, LSE. [Downloadable!]
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  12. Michael C. Burda & Barbara Dluhosch, 2000. "Fragmentation, Globalization and Labor Markets," CESifo Working Paper Series CESifo Working Paper No. , CESifo GmbH. [Downloadable!]
    Other versions:
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