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International Trade in Manufactured Products

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Author Info

  • Ehsan U. Choudhri
  • Dalia Hakura

Abstract

A large data set on trade in manufactured products is used to evaluate the performance of a model that combines both the Ricardian and Heckscher-Ohlin effects and incorporates monopolistic competition. The paper estimates a relation implied by the model to explain relative sectoral exports of major countries to a number of important markets, using 1970-90 data for nine manufacturing sectors. The relation fits the data well and variables suggested by both traditional and new trade models play an important role in explaining relative exports.

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Bibliographic Info

Paper provided by International Monetary Fund in its series IMF Working Papers with number 01/41.

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Length: 27
Date of creation: 01 Mar 2001
Date of revision:
Handle: RePEc:imf:imfwpa:01/41

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Related research

Keywords: Production; Economic models; intermediate goods; international trade; trade barriers; intermediate inputs; trade models; fixed capital formation; trade flows; factor endowments; exporting countries; perfect competition; unit of capital; foreign trade; net exports; trade data; political economy; total factor productivity; real gdp; gross fixed capital formation; capital formation; export ratio; trade costs; value of exports; product differentiation; imperfect competition; trading partners; industry trade; trade liberalization; regional trade liberalization; world exports; domestic production; elasticity of substitution; bilateral trade; exchange rate fluctuations; investment goods; regional trade; metal products; factor shares; trade theories; domestic price; export performance;

This paper has been announced in the following NEP Reports:

References

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  1. Trefler, Daniel, 1995. "The Case of the Missing Trade and Other Mysteries," American Economic Review, American Economic Association, vol. 85(5), pages 1029-46, December.
  2. James Harrigan, 1996. "Technology, factor supplies, and international specialization: estimating the neoclassical model," Staff Reports 15, Federal Reserve Bank of New York.
  3. Caballero, Ricardo J. & Lyons, Richard K., 1990. "Internal versus external economies in European industry," European Economic Review, Elsevier, vol. 34(4), pages 805-826, June.
  4. Deardorff, Alan V., 1984. "Testing trade theories and predicting trade flows," Handbook of International Economics, in: R. W. Jones & P. B. Kenen (ed.), Handbook of International Economics, edition 1, volume 1, chapter 10, pages 467-517 Elsevier.
  5. Donald R. Davis & David E. Weinstein, 2001. "An Account of Global Factor Trade," American Economic Review, American Economic Association, vol. 91(5), pages 1423-1453, December.
  6. Leamer, Edward E, 1980. "The Leontief Paradox, Reconsidered," Journal of Political Economy, University of Chicago Press, vol. 88(3), pages 495-503, June.
  7. Dixit, Avinash K & Stiglitz, Joseph E, 1975. "Monopolistic Competition and Optimum Product Diversity," The Warwick Economics Research Paper Series (TWERPS) 64, University of Warwick, Department of Economics.
  8. Dalia Hakura, 1999. "A Test of the General Validity of the Heckscher-Ohlin Theorem for Trade in the European Community," IMF Working Papers 99/70, International Monetary Fund.
  9. Ehsan U. Choudhri & Lawrence L. Schembri, 1999. "Productivity Performance and International Competitiveness: A New Test of an Old Theory," Carleton Economic Papers 99-02, Carleton University, Department of Economics.
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Cited by:
  1. Gianfranco De Simone, 2008. "Trade in Parts and Components and the Industrial Geography of Central and Eastern European Countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 144(3), pages 428-457, October.

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