Product specialization in international trade: A further investigation
AbstractIn an influential paper, Schott [Schott. Peter K. (2004). "Across-product versus within-product specialization in international trade." Quarterly Journal of Economics, 119 (2): 647-678] makes two empirical observations about U.S. imports. (1) The United States is increasingly sourcing the same product (however narrowly defined) from both developed and developing countries. That is, 'across-product specialization' has been decreasing. (2) The unit values of these multiple-sourced products are positively and significantly correlated with the capital and skill abundance of exporters and with the capital-labor ratios used by exporters. That is, endowments-driven 'within-product specialization' has been increasing. We show that both these observations extend to the imports of Brazil, India and Japan. However, our main finding is that observation (1) is largely driven by two factors. First, China is the dominant low-wage exporter of multiple-sourced products. Second, the most developed countries remain the primary exporters of multiple-sourced products. The U.S. case is the most extreme of our four importers: When China is deleted from the U.S. import data there is no trend in across-product specialization and rich exporters are increasing their trade share of multiple-sourced products. Since deleting China has no theoretical justification, these results must be viewed not as a contradiction of Schott's work but as a way of deepening our understanding of his empirical results.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Elsevier in its journal Journal of International Economics.
Volume (Year): 75 (2008)
Issue (Month): 1 (May)
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/505552
Other versions of this item:
- Cong S. Pham, 2007. "Product Specialization in International Trade: A Further Investigation," Economics Series 2007_14, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance.
- F11 - International Economics - - Trade - - - Neoclassical Models of Trade
- F2 - International Economics - - International Factor Movements and International Business
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Robert C. Feenstra, 1996. "U.S. Imports, 1972-1994: Data and Concordances," NBER Working Papers 5515, National Bureau of Economic Research, Inc.
- Susan Chun Zhu, 2004. "Trade, product cycles, and inequality within and between countries," Canadian Journal of Economics, Canadian Economics Association, vol. 37(4), pages 1042-1060, November.
- Peter K. Schott, 2006.
"The Relative Sophistication of Chinese Exports,"
NBER Working Papers
12173, National Bureau of Economic Research, Inc.
- Zhu, Susan Chun & Trefler, Daniel, 2005. "Trade and inequality in developing countries: a general equilibrium analysis," Journal of International Economics, Elsevier, vol. 65(1), pages 21-48, January.
- Bekkers, Eddy & Francois, Joseph & Manchin, Miriam, 2012.
"Import prices, income, and inequality,"
European Economic Review,
Elsevier, vol. 56(4), pages 848-869.
- Eddy Bekkers & Joseph Francois & Miriam Manchin, 2012. "Import Prices, Income and Inequality," Economics working papers 2012-03, Department of Economics, Johannes Kepler University Linz, Austria.
- Bekkers, Eddy & Francois, Joseph & Manchin, Miriam, 2012. "Import Prices, Income, and Inequality," CEPR Discussion Papers 8911, C.E.P.R. Discussion Papers.
- Eddy Bekkers & Joseph Francois & Miriam Manchin, 2012. "Import Prices, Income, and Inequality," IIDE Discussion Papers 20120201, Institue for International and Development Economics.
- Eddy Bekkers & Joseph F. Francois & M. Manchin, 2012. "Import Prices, Income, and Inequality," wiiw Working Papers 82, The Vienna Institute for International Economic Studies, wiiw.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wendy Shamier).
If references are entirely missing, you can add them using this form.