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Intra-National Trade as Channels of Spillovers in Developing Countries

Author

Listed:
  • Yong He

    (CERDI - Centre d'Études et de Recherches sur le Développement International - UCA [2017-2020] - Université Clermont Auvergne [2017-2020] - CNRS - Centre National de la Recherche Scientifique)

Abstract

We developed a model to explore the comparative advantage based intra-national trade in developing countries, as a contrast to models driven by increasing returns and agglomeration that prevail in the developed world. The model incorporates technological spillovers and trade. The findings suggest that the intra-national trade share of a region is inversely proportional to its technological level, and that economic growth diffuses along the intra-national trade network from the developed country, through the advanced regions of the developing country, into its less developed regions. Internal trade costs exert a multiplied hindering effect, stronger than that of border barriers, on national growth. The statistics derived from China's 2007 provincial input-output tables provide evidence in favor of the main theoretical findings.

Suggested Citation

  • Yong He, 2017. "Intra-National Trade as Channels of Spillovers in Developing Countries," Post-Print hal-01682668, HAL.
    • Handle: RePEc:hal:journl:hal-01682668
    DOI: 10.11130/jei.2017.32.2.358
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    Cited by:

    1. He, Yong, 2018. "An Empirical Test on Regional Spillovers through Intra- and International Trade," MPRA Paper 88780, University Library of Munich, Germany.
    2. Yong He, 2019. "An Empirical Test on Regional Spillovers through Intra-and Inter-national Trade," Post-Print hal-03185078, HAL.

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