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International Trade with Lumpy Countries

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Author Info
Courant, Paul N
Deardorff, Alan V

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Abstract

This paper explores the implications for the pattern of international trade of differences among regions within countries--what the authors call "lumpiness." If factors of production are sufficiently unevenly distributed across regions, then the pattern of trade of the country as a whole may depart from what it would have been had factors been evenly distributed. Thus, lumpiness in the geographical distribution of factors can be a determinant of trade. The authors show in particular that if other determinants of trade are absent, then a country will tend to export the good that intensively uses its lumpier (i.e., more unevenly distributed) factor. Copyright 1992 by University of Chicago Press.

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Publisher Info
Article provided by University of Chicago Press in its journal Journal of Political Economy.

Volume (Year): 100 (1992)
Issue (Month): 1 (February)
Pages: 198-210
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Handle: RePEc:ucp:jpolec:v:100:y:1992:i:1:p:198-210

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  1. Andrew Bernard & Stephen Redding & Peter Schott, 2005. "Factor Price Equality and the Economies of the United States," Working Papers 05-21, Center for Economic Studies, U.S. Census Bureau. [Downloadable!]
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  2. Holger C. Wolf, 1997. "Patterns of Intra- and Inter-State Trade," NBER Working Papers 5939, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. Gordon H. Hanson, 2000. "Scale Economies and the Geographic Concentration of Industry," NBER Working Papers 8013, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  4. Jeffrey R. Bernstein & David E. Weinstein, 1998. "Do Endowments Predict the Location of Production? Evidence from National and International Data," NBER Working Papers 6815, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  5. Peter K. Schott, 2006. "The Relative Sophistication of Chinese Exports," NBER Working Papers 12173, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  6. Paul Krugman & Anthony J. Venables, 1995. "The Seamless World: A Spatial Model of International Specialization," NBER Working Papers 5220, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  7. Glenn Rayp, 1998. "An empirical test of the Dixit-Norman approach to factor price equalization, using cointegration techniques," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 134(3), pages 484-512, September. [Downloadable!] (restricted)
  8. Andrew B. Bernard & Raymond Robertson & Peter K. Schott, 2004. "Is Mexico A Lumpy Country?," NBER Working Papers 10898, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  9. Alan Deardorff, 1994. "Exploring the limits of comparative advantage," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 130(1), pages 1-19, March. [Downloadable!] (restricted)
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  10. Alan V. Deardorff, 2005. "How Robust is Comparative Advantage?," Working Papers 537, Research Seminar in International Economics, University of Michigan. [Downloadable!]
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  11. Donald R. Davis & David E. Weinstein & Scott C. Bradford & Kazushige Shimpo, 1996. "The Heckscher-Ohlin-Vanek Model of Trade: Why Does It Fail? When Does It Work?," NBER Working Papers 5625, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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