Input substitutability, trade costs and the product cycle
I exhibit a simple and realistic feature of technology and trade costs that influences the partition of manufacturing between the North and South depending on the degree of substitutability of internationally traded inputs in production. In the presence of higher wages in the North, when production of manufacturing goods requires tradeable, country-specifi c Ricardian inputs, goods with a low elasticity of substitution between inputs in production will have lower costs of manufacturing in the North and those with a high elasticity in the South.
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|Date of creation:||19 Jan 2011|
|Publication status:||Published in 2011|
|Note:||View the original document on HAL open archive server: https://hal-hec.archives-ouvertes.fr/hal-00625479|
|Contact details of provider:|| Web page: https://hal.archives-ouvertes.fr/|
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.:
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