Advanced Search
MyIDEAS: Login

A world trade model with bilateral trade based on comparative advantage

Contents:

Author Info

  • Anders Hammer Str�mman
  • Faye Duchin

Abstract

This paper describes an extension of Duchin's world trade model to include the explicit representation of transportation costs, permitting the endogenous determination of bilateral trade flows and region-specific prices. The original model is a linear program that, based on comparative advantage and the minimization of factor use, determines regional production and trade flows as well as world prices and scarcity rents for m regions, n good, and k factors. The new world trade model with bilateral trade achieves its objectives by introducing transportation services and geographically dependent transportation requirements for each traded good and each pair of potential trade partners. The formulation of this model and its major properties are presented, and results from a preliminary analysis with 11 regions, eight goods, four transportation sectors, and six factors of production are reported and compared with corresponding results from the world trade model. On the basis of this comparison, we conclude that transportation costs have little impact on a region's total imports or exports of a given commodity.

Download Info

If 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.
File URL: http://www.tandfonline.com/doi/abs/10.1080/09535310600844300
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Economic Systems Research.

Volume (Year): 18 (2006)
Issue (Month): 3 ()
Pages: 281-297

as in new window
Handle: RePEc:taf:ecsysr:v:18:y:2006:i:3:p:281-297

Contact details of provider:
Web page: http://www.tandfonline.com/CESR20

Order Information:
Web: http://www.tandfonline.com/pricing/journal/CESR20

Related research

Keywords: Input-output model; comparative advantage; world trade model; bilateral trade;

Other versions of this item:

Find related papers by JEL classification:

References

References listed on IDEAS
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.:
as in new window
  1. Faye Duchin, 2003. "A World Trade Model Based on Comparative Advantage with m Regions, n Goods, and k Factors," Rensselaer Working Papers in Economics 0309, Rensselaer Polytechnic Institute, Department of Economics, revised Mar 2004.
  2. Leontief, Wassily, 1977. "The future of the world economy+," Socio-Economic Planning Sciences, Elsevier, vol. 11(3), pages 171-182.
  3. Anders Hammer Str�mman & Edgar G. Hertwich & Faye Duchin, 2005. "Shifting Trade Patterns as a Means to Reduce Global CO2 Emissions: Implications for the Aluminium Industry," Rensselaer Working Papers in Economics 0508, Rensselaer Polytechnic Institute, Department of Economics.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Hansen, Mark & Smirti, Megan & Zou, Bo, 2008. "A Comparative Evaluation of Greenhouse Gas Emission Reduction Strategies for the Maritime Shipping and Aviation Sectors," University of California Transportation Center, Working Papers qt4j3573wm, University of California Transportation Center.
  2. Wiedmann, Thomas, 2009. "A review of recent multi-region input-output models used for consumption-based emission and resource accounting," Ecological Economics, Elsevier, vol. 69(2), pages 211-222, December.
  3. Faye Duchin, 2007. "Energy and the Global Economy," Rensselaer Working Papers in Economics 0704, Rensselaer Polytechnic Institute, Department of Economics.
  4. Faye Duchin, 2003. "A World Trade Model Based on Comparative Advantage with m Regions, n Goods, and k Factors," Rensselaer Working Papers in Economics 0309, Rensselaer Polytechnic Institute, Department of Economics, revised Mar 2004.
  5. Chen, Z.M. & Chen, G.Q., 2011. "Embodied carbon dioxide emission at supra-national scale: A coalition analysis for G7, BRIC, and the rest of the world," Energy Policy, Elsevier, vol. 39(5), pages 2899-2909, May.
  6. Lining He & Faye Duchin, 2009. "Regional Development In China: Interregional Transportation Infrastructure And Regional Comparative Advantage," Economic Systems Research, Taylor & Francis Journals, vol. 21(1), pages 3-22.
  7. Anders Hammer Str�mman & Edgar G. Hertwich & Faye Duchin, 2005. "Shifting Trade Patterns as a Means to Reduce Global CO2 Emissions: Implications for the Aluminium Industry," Rensselaer Working Papers in Economics 0508, Rensselaer Polytechnic Institute, Department of Economics.
  8. Lindstad, Haakon & Asbjørnslett, Bjørn E. & Strømman, Anders H., 2011. "Reductions in greenhouse gas emissions and cost by shipping at lower speeds," Energy Policy, Elsevier, vol. 39(6), pages 3456-3464, June.
  9. Wiedmann, Thomas & Lenzen, Manfred & Turner, Karen & Barrett, John, 2007. "Examining the global environmental impact of regional consumption activities -- Part 2: Review of input-output models for the assessment of environmental impacts embodied in trade," Ecological Economics, Elsevier, vol. 61(1), pages 15-26, February.
  10. Faye Duchin & Stephen H. Levine, 2010. "Embodied Resource Flows and Product Flows: Combining the Absorbing Markov Chain with the Input-Output Model," Rensselaer Working Papers in Economics 1002, Rensselaer Polytechnic Institute, Department of Economics.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:taf:ecsysr:v:18:y:2006:i:3:p:281-297. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.