Explaining Trade Flows : Traditional and New Determinants of Trade Patterns

Explaining Trade Flows : Traditional and New Determinants of Trade Patterns

An empirical tradition in international trade seeks to establish whether the predictions of factor abundance theory match with the data. In this paper, we test if the "new" determinants used in the factor content version of H-O-V models (differences in productivity, in returns to scale or...

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Main Author: Gourdon, Julien
Format: Journal Article
Language:EN
Published: 2012
Subjects:
Neoclassical Models of Trade F110
Models of Trade with Imperfect Competition and Scale Economies F120
Country and Industry Studies of Trade F140
Online Access:http://hdl.handle.net/10986/5794
id okr-10986-5794
recordtype oai_dc
spelling okr-10986-57942021-04-23T14:02:23Z Explaining Trade Flows : Traditional and New Determinants of Trade Patterns Gourdon, Julien Neoclassical Models of Trade F110 Models of Trade with Imperfect Competition and Scale Economies F120 Country and Industry Studies of Trade F140 An empirical tradition in international trade seeks to establish whether the predictions of factor abundance theory match with the data. In this paper, we test if the "new" determinants used in the factor content version of H-O-V models (differences in productivity, in returns to scale or in consumers' preferences) help us to improve our estimation of trade patterns in commodities. The results show that conventional factors are still important in determining trade structure although new determinants need to be included to determine comparative advantage. Turning to the change across periods, differences in factor endowments have not diminished over time: we observe an increase in specialization according to skill endowment. Hence, those "new" determinants are not new forces that drive trade flows. 2012-03-30T07:34:35Z 2012-03-30T07:34:35Z 2009 Journal Article Journal of Economic Integration 1225651X http://hdl.handle.net/10986/5794 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language EN
topic Neoclassical Models of Trade F110
Models of Trade with Imperfect Competition and Scale Economies F120
Country and Industry Studies of Trade F140
spellingShingle Neoclassical Models of Trade F110
Models of Trade with Imperfect Competition and Scale Economies F120
Country and Industry Studies of Trade F140
Gourdon, Julien
Explaining Trade Flows : Traditional and New Determinants of Trade Patterns
relation http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description An empirical tradition in international trade seeks to establish whether the predictions of factor abundance theory match with the data. In this paper, we test if the "new" determinants used in the factor content version of H-O-V models (differences in productivity, in returns to scale or in consumers' preferences) help us to improve our estimation of trade patterns in commodities. The results show that conventional factors are still important in determining trade structure although new determinants need to be included to determine comparative advantage. Turning to the change across periods, differences in factor endowments have not diminished over time: we observe an increase in specialization according to skill endowment. Hence, those "new" determinants are not new forces that drive trade flows.
format Journal Article
author Gourdon, Julien
author_facet Gourdon, Julien
author_sort Gourdon, Julien
title Explaining Trade Flows : Traditional and New Determinants of Trade Patterns
title_short Explaining Trade Flows : Traditional and New Determinants of Trade Patterns
title_full Explaining Trade Flows : Traditional and New Determinants of Trade Patterns
title_fullStr Explaining Trade Flows : Traditional and New Determinants of Trade Patterns
title_full_unstemmed Explaining Trade Flows : Traditional and New Determinants of Trade Patterns
title_sort explaining trade flows : traditional and new determinants of trade patterns
publishDate 2012
url http://hdl.handle.net/10986/5794
_version_ 1764396319127896064

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