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An elementary proposition on technical progress and non-traded goods

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  • Beladi, Hamid
  • Oladi, Reza

Abstract

We explore the effect of technical progress on the endogenously determined range of non-traded goods by using a Ricardian model with continuum of goods. By defining technical progress on the basis of proportional changes in the relative productivity across sectors, we show that the range of non-traded goods decreases if technical progress is unbiased or if it is biased toward the goods that a country has more comparative advantage.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Mathematical Economics.

Volume (Year): 47 (2011)
Issue (Month): 1 (January)
Pages: 68-71

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Handle: RePEc:eee:mateco:v:47:y:2011:i:1:p:68-71

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Web page: http://www.elsevier.com/locate/jmateco

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Keywords: Non-traded good range Technical progress;

References

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  1. Dornbusch, Rudiger & Fischer, Stanley & Samuelson, Paul A, 1977. "Comparative Advantage, Trade, and Payments in a Ricardian Model with a Continuum of Goods," American Economic Review, American Economic Association, vol. 67(5), pages 823-39, December.
  2. Fabio Ghironi & Marc J. Melitz, 2004. "International Trade and Macroeconomic Dynamics with Heterogeneous Firms," NBER Working Papers 10540, National Bureau of Economic Research, Inc.
  3. Melitz, Marc J, 2002. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," CEPR Discussion Papers 3381, C.E.P.R. Discussion Papers.
  4. Reza Oladi & Hamid Beladi, 2008. "Non-traded Goods, Technical Progress and Wages," Open Economies Review, Springer, vol. 19(4), pages 507-515, September.
  5. Oladi, Reza & Beladi, Hamid, 2010. "On technical progress and the boundary of non-traded goods," Mathematical Social Sciences, Elsevier, vol. 60(3), pages 204-209, November.
  6. Sugata Marjit & Hamid Beladi, 2009. "International And Intra-National Trade: A Continuum Approach," The Japanese Economic Review, Japanese Economic Association, vol. 60(3), pages 320-332.
  7. Oladi, Reza & Beladi, Hamid, 2009. "Market interconnection and wages," Economics Letters, Elsevier, vol. 105(1), pages 117-119, October.
  8. Jones, Ronald W, 1974. "Trade with Non-traded Goods: The Anatomy of Inter-connected Markets," Economica, London School of Economics and Political Science, vol. 41(162), pages 121-38, May.
  9. Chakrabarti, Avik & Mitra, Rajarshi, 2010. "Skilled-unskilled wage inequality and offshore outsourcing with asymmetric adjustment costs," International Review of Economics & Finance, Elsevier, vol. 19(2), pages 340-345, April.
  10. Jones, Ronald W., 1996. "International trade, real wages, and technical progress: The specific-factors model," International Review of Economics & Finance, Elsevier, vol. 5(2), pages 113-124.
  11. Bond, Eric, 2005. "Market linkages with fragmented production," The North American Journal of Economics and Finance, Elsevier, vol. 16(1), pages 119-135, March.
  12. Bela Balassa, 1964. "The Purchasing-Power Parity Doctrine: A Reappraisal," Journal of Political Economy, University of Chicago Press, vol. 72, pages 584.
  13. Hamid Beladi & Ravi Batra, 2004. "Traded and Nontraded Goods and Real Wages," Review of Development Economics, Wiley Blackwell, vol. 8(1), pages 1-14, 02.
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Citations

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Cited by:
  1. Amitrajeet Batabyal & Peter Nijkamp, 2013. "The creative class, its preferences, and unbalanced growth in an urban economy," Journal of Evolutionary Economics, Springer, vol. 23(1), pages 189-209, January.
  2. Beladi, Hamid & Oladi, Reza & Tay, Nicholas S.P., 2012. "On competition for listings," Economics Letters, Elsevier, vol. 114(3), pages 315-318.
  3. Amitrajeet Batabyal & Peter Nijkamp, 2013. "A multi-region model of economic growth with human capital and negative externalities in innovation," Journal of Evolutionary Economics, Springer, vol. 23(4), pages 909-924, September.

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