Quality and Trade
We present a model of trade in which similar countries trade more with each other than very different countries. The reason is that high human capital countries have a comparative advantage at producing high quality goods, but are also rich enough to want to consume high quality. As a result, countries choose trading partners at a similar level of development, who produce similar quality products. The model helps account for the observed trade patterns, and sheds light on international income comparisons. It also helps explain recent concerns of Eastern European countries that they have "nothing to sell" to the West.
(This abstract was borrowed from another version of this item.)
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
|Date of creation:||1991|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://research.chicagobooth.edu/economy/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132.
- Markusen, James R, 1986. "Explaining the Volume of Trade: An Eclectic Approach," American Economic Review, American Economic Association, vol. 76(5), pages 1002-11, December.
- Stokey, Nancy L, 1991.
"The Volume and Composition of Trade between Rich and Poor Countries,"
Review of Economic Studies,
Wiley Blackwell, vol. 58(1), pages 63-80, January.
- Nancy L. Stokey, 1989. "The Volume and Composition of Trade Between Rich and Poor Countries," Discussion Papers 849, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- 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.
- Raymond Vernon, 1970. "Introduction to "The Technology Factor in International Trade"," NBER Chapters, in: The Technology Factor in International Trade, pages 1-5 National Bureau of Economic Research, Inc.
- Gene M. Grossman & Elhanan Helpman, 1989.
"Quality Ladders and Product Cycles,"
NBER Working Papers
3201, National Bureau of Economic Research, Inc.
- repec:tpr:qjecon:v:106:y:1991:i:2:p:369-405 is not listed on IDEAS
- repec:tpr:qjecon:v:106:y:1991:i:2:p:587-616 is not listed on IDEAS
- Raymond Vernon, 1970. "The Technology Factor in International Trade," NBER Books, National Bureau of Economic Research, Inc, number vern70-1, December.
- Nancy L. Stokey, 1990.
"Human Capital, Product Quality, and Growth,"
883, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- repec:sae:niesru:v:111:y::i:1:p:48-61 is not listed on IDEAS
- Jones, Ronald W. & Peter Neary, J., 1984. "The positive theory of international trade," Handbook of International Economics, in: R. W. Jones & P. B. Kenen (ed.), Handbook of International Economics, edition 1, volume 1, chapter 1, pages 1-62 Elsevier.
- Alwyn Young, 1991. "Learning by Doing and the Dynamic Effects of International Trade," NBER Working Papers 3577, National Bureau of Economic Research, Inc.
- Flam, Harry & Helpman, Elhanan, 1987. "Vertical Product Differentiation and North-South Trade," American Economic Review, American Economic Association, vol. 77(5), pages 810-22, December.
When requesting a correction, please mention this item's handle: RePEc:fth:chices:66. 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: (Thomas Krichel)
If references are entirely missing, you can add them using this form.