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Communication Costs and Trade of Differentiated Goods

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  • Linghui Tang

Abstract

This paper investigates how the decline of communication costs affects the pattern of trade in differentiated goods. It is found that the development of information technology (IT) has significantly increased US imports of differentiated goods after the 1970s. In addition, the modern communication technology has assisted small economies from exporting homogeneous goods to exporting more and more differentiated goods in recent years.

Suggested Citation

  • Linghui Tang, 2006. "Communication Costs and Trade of Differentiated Goods," Review of International Economics, Wiley Blackwell, vol. 14(1), pages 54-68, February.
    • Handle: RePEc:bla:reviec:v:14:y:2006:i:1:p:54-68
    DOI: 10.1111/j.1467-9396.2006.00560.x
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    References listed on IDEAS

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    1. Robert C. Feenstra & John Romalis & Peter K. Schott, 2002. "U.S. Imports, Exports, and Tariff Data, 1989-2001," NBER Working Papers 9387, National Bureau of Economic Research, Inc.
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