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The Theory of Trade in Middle Products

In: International Trade Theory and Competitive Models Features, Values, and Criticisms

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  • Kalyan K. Sanyal
  • Ronald W. Jones

Abstract

The bulk of international trade consists of the exchange of intermediate products, raw materials, and goods which require further local processing before reaching the final consumer. Furthermore, few items in international commerce are pure raw materials or primary factors which have not received any value-added from other local inputs. If production is viewed as a spectrum of activities whereby local primary resources help produce and transform commodities into the final state required by consumers, these observations suggest that international trade takes place in “middle products”…

Suggested Citation

  • Kalyan K. Sanyal & Ronald W. Jones, 2018. "The Theory of Trade in Middle Products," World Scientific Book Chapters, in: International Trade Theory and Competitive Models Features, Values, and Criticisms, chapter 13, pages 203-231, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789813200678_0013
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    Keywords

    International Trade Theory; Models; Competitive Markets;
    All these keywords.

    JEL classification:

    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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