Trade theorems in a model of vertical production chain
This paper investigates the Rybczynski theorem, the Stolper-Samuelson theorem, and the Heckscher-Ohlin theorem in a two-factor vertical production chain model of trade. For this purpose, capital is introduced into the model of Yano and Dei [Yano, M., & Dei, F. (2003). Trade, vertical production chain, and competition policy. Review of International Economics, 11(2), 237-252.]. A primary analytic device is the economy-wide production curve. This curve is derived under autarky and free trade, respectively.
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- Sanyal, Kalyan K & Jones, Ronald W, 1982. "The Theory of Trade in Middle Products," American Economic Review, American Economic Association, vol. 72(1), pages 16-31, March.
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- Ronald W. Jones, 1965. "The Structure of Simple General Equilibrium Models," Journal of Political Economy, University of Chicago Press, vol. 73, pages 557.
- Yano, Makoto, 2001. "Trade Imbalance and Domestic Market Competition Policy," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 42(3), pages 729-50, August.
- Makoto Yano & Fumio Dei, 2003. "Trade, Vertical Production Chain, and Competition Policy," Review of International Economics, Wiley Blackwell, vol. 11(2), pages 237-252, 05.
- Takakazu Honryo & Makoto Yano, 2006. "Short-Run Trade Surplus Creation In A Two-Sector Setting," The Japanese Economic Review, Japanese Economic Association, vol. 57(4), pages 476-482.
- Ethier, Wilfred, 1972. "Nontraded Goods and the Heckscher-Ohlin Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 13(1), pages 132-47, February.
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