|
EconStor >
Deutsches Institut für Wirtschaftsforschung (DIW), Berlin >
DIW-Diskussionspapiere >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/18243
|
| | |
| Title: | | Market Size and Factor Endowment: Explaining Comparative Advantage in Bilateral Trade by Differences in Income and Per Capita Income  |
| Authors: | | Schumacher, Dieter |
| Issue Date: | | 2001 |
| Series/Report no.: | | DIW-Diskussionspapiere 259 |
| Abstract: | | Using a gravity-type explanation of international trade flows at the industry level, it is shown that the pattern of comparative advantage in terms of sectoral export/import ratios in bilateral trade can be explained by relative income and relative per capita income. Total income of a country is a proxy of its economic size and has a positive effect on comparative advantage in most manufacturing industries (home market effect). Per capita income represents the capital-labour endowment ratio and demand conditions. In sum, it has a positive effect in (human) capital-intensive industries and a negative effect in labour-intensive industries. |
| Subjects: | | Gravity model comparative advantage bilateral trade home market effect factor endowment |
| JEL: | | F12 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Publikationen von Forscherinnen und Forschern des DIW DIW-Diskussionspapiere
|
| Files in This Item:
| |
| File |
Description |
Size | Format |
| dp259.pdf | | 195.07 kB | Adobe PDF |
|
| No. of Downloads:
| |
| last Month |
last 3 Month |
total |
|
|
|
|
|
| |
| | |
Download bibliographical data as:
BibTeX
|
| |
Share on:http://hdl.handle.net/10419/18243
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|