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Trade pattern reversal: The role of technological change, factor accumulation and government intervention

  • Klaus Waelde

    (University of Kiel, Kiel, Germany)

During the last decades, some Asian countries have experienced a substantial change of their production structure leading to a change of their trade patterns. Whereas formerly high-tech goods were imported, they now constitute an important fraction of the countries' exports. Possible reasons for such a situation to arise are investigated in a model combining Ricardian and Heckscher-Ohlin effects. In addition the role of government intervention on factor accumulation and technological change is studied. A reversal of trade patterns and a catching up and falling behind process can be endogenously explained by these features.

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Paper provided by EconWPA in its series International Trade with number 9403003.

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Length: 21 pages
Date of creation: 24 Mar 1994
Date of revision: 06 Apr 1994
Handle: RePEc:wpa:wuwpit:9403003
Note: 21 pages, single spaced, 5 figures, PostScript, replacement (now 11inch length, same contents)
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