Advanced Search
MyIDEAS: Login

Do Countries Specialize?

Contents:

Author Info

  • Peter K. Schott

    ()
    (School of Management)

Abstract

Do rich and poor countries compete by exporting the same mix of goods to the US? Using highly disaggregate trade flow data ? which breaks US imports into thousands rather than tens of goods ? this paper documents two significant trends. First, the portion of US imports originating in either rich or poor countries exclusively has fallen dramatically as world trade has increased, from 50% in 1972 to 25% in 1994. This heightened export competition among countries with vastly different factor endowments is greatest in manufactures, particularly apparel and textiles, and smallest in natural resources. Second, when rich and poor countries both export a manufactured good to the US, rich countries receive a significantly higher price for their export than poor countries, and this disparity increases with time. To the extent that this heterogeneity maps into product differences, it consistent with the type of specialization implied by both the Heckscher-Ohlin model of trade and Product Cycle theory. On the other hand, significant intra-good price differences are troubling for existing empirical trade research because they suggest that even a very fine categorization of commodities may be too coarse for the assumptions underlying most trade models. We discuss the implications of unaccounted-for product heterogeneity for previous Heckscher-Ohlin estimations as well as its potential relevance for the trade and wages debate.

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://papers.ssrn.com/sol3/papers.cfm?abstract_id=258273
Download Restriction: no

Bibliographic Info

Paper provided by Yale School of Management in its series Yale School of Management Working Papers with number ysm173.

as in new window
Length:
Date of creation: 19 Feb 2001
Date of revision:
Handle: RePEc:ysm:somwrk:ysm173

Contact details of provider:
Web page: http://icf.som.yale.edu/
More information through EDIRC

Related research

Keywords:

Find related papers by JEL classification:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

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

Cited by:
  1. Peter K. Schott, 2001. "One Size Fits All? Heckscher-Ohlin Specialization in Global Production," NBER Working Papers 8244, National Bureau of Economic Research, Inc.
  2. Andrew B. Bernard & J. Bradford Jensen & Peter K. Schott, 2001. "Factor Price Equality and the Economies of the United States," NBER Working Papers 8068, National Bureau of Economic Research, Inc.
  3. Tibor Besedes & Thomas J. Prusa, 2003. "On the Duration of Trade," NBER Working Papers 9936, National Bureau of Economic Research, Inc.
  4. Tibor Besedes & Thomas J. Prusa, 2004. "Surviving the U.S. Import Market: The Role of Product Differentiation," NBER Working Papers 10319, National Bureau of Economic Research, Inc.

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:ysm:somwrk:ysm173. 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: ().

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.