Intra-Industry Trade in Intermediate Goods and Final Goods in a General Equilibrium Setting
AbstractThis article develops a dual general equilibrium model to analyze the effects of intra-industry trade in both intermediate goods and final goods on the productivity in the final good production. Intra-industry trade in intermediate goods determines an increase in the number of intermediate good varieties available in the final good production, and intra-industry trade in final goods determines a reduction in the number of adaptations of an intermediate good to the final good production. Thereby, the productivity in the final good production increases. Different shares of intra-industry trade in intermediate goods and final goods in a general equilibrium setting implies that Jones' â€œmagnification effectâ€ and both the Rybczynski theorem and the Stolper-Samuelson theorem are not valid. Copyright Kluwer Academic Publishers 2003
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Bibliographic InfoArticle provided by Springer in its journal Open Economies Review.
Volume (Year): 14 (2003)
Issue (Month): 2 (April)
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Web page: http://www.springerlink.com/link.asp?id=100323
intra-industry trade; intermediate goods; international distribution of production; Jones' â€œmagnification effect; â€ the Rybczynski theorem; the Stolper-Samuelson theorem; general equilibrium;
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- Ethier, Wilfred, 1979. "Internationally decreasing costs and world trade," Journal of International Economics, Elsevier, vol. 9(1), pages 1-24, February.
- David Greenaway & Johan Torstensson,, .
"Back to the Future: Taking Stock on Intra-Industry Trade,"
96/14, University of Nottingham, CREDIT.
- David Greenaway & Johan Torstensson, 1997. "Back to the future: Taking stock on intra-industry trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 133(2), pages 249-269, 06.
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