Productivity, demand and the home market effect
The causality between international trade and industrialization is still ambiguous. We consider a model of international trade with the Home Market Effect - with differences in income and productivity between sectors and between countries - in order to identify additional channels for determining th...
- Autores:
- Tipo de recurso:
- Fecha de publicación:
- 2016
- Institución:
- Universidad del Rosario
- Repositorio:
- Repositorio EdocUR - U. Rosario
- Idioma:
- spa
- OAI Identifier:
- oai:repository.urosario.edu.co:10336/11931
- Acceso en línea:
- https://doi.org/10.48713/10336_11931
http://repository.urosario.edu.co/handle/10336/11931
- Palabra clave:
- Comercio internacional (Comercio exterior)
F10
F12
F17
International Trade
Non-homothetic Preferences
Home Market Effect
Monopolistic Competition.
Producción (Teoría Económica)
Consumo (Economía)
Comercio internacional
- Rights
- License
- http://creativecommons.org/licenses/by-nc-nd/2.5/co/
Summary: | The causality between international trade and industrialization is still ambiguous. We consider a model of international trade with the Home Market Effect - with differences in income and productivity between sectors and between countries - in order to identify additional channels for determining the effects of international trade on industrialization. Introducing non-homothetic preferences and differences in productivity aids in the interpretation of any apparent paradoxes within international trade, such as the commercial relations between more populated countries like China and India and large economies such as the U.S. Population size, demand composition and productivity levels constitute the three main channels for determining the effects of international trade. Interactions among these channels define the results obtained in terms of industrialization, while welfare levels are always higher in relation to autarky. |
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