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dc.contributor.authorBreinlich, Holgeren_US
dc.contributor.authorCuñat, Alejandroen_US
dc.date.accessioned2012-09-26en_US
dc.date.accessioned2012-10-11T15:54:34Z-
dc.date.available2012-10-11T15:54:34Z-
dc.date.issued2012en_US
dc.identifier.urihttp://hdl.handle.net/10419/64837-
dc.description.abstractWe propose a quantitative framework for the analysis of industrialization in which specialization in manufacturing or agriculture is driven by comparative advantage and non-homothetic preferences. Countries are integrated through trade but trade is not costless and geographic position matters. We use a number of analytical examples and a multi-country calibration to explain two important empirical regularities: (i) there is a strong positive cor-relation between proximity to large markets and levels of manufacturing activity; (ii) there is a positive correlation between the ratio of agricultural to manufacturing productivity and shares of manufacturing in GDP. Our calibrated model replicates these facts and also provides a better fit to cross-sectional data on manufacturing shares than frameworks which ignore the role of trade costs or non-homotheticity. We use the calibrated model to quantitatively ana-lyze the effect of increases in agricultural productivity and a further lowering of trade barriers.en_US
dc.language.isoengen_US
dc.publisherCESifo Münchenen_US
dc.relation.ispartofseriesCESifo Working Paper: Trade Policy 3927en_US
dc.subject.jelF11en_US
dc.subject.jelF12en_US
dc.subject.jelF14en_US
dc.subject.jelO14en_US
dc.subject.ddc330en_US
dc.subject.keywordindustrializationen_US
dc.subject.keywordeconomic geographyen_US
dc.subject.keywordinternational tradeen_US
dc.subject.stwIndustrialisierungen_US
dc.subject.stwArbeitsteilungen_US
dc.subject.stwAußenwirtschaften_US
dc.subject.stwEntfernungen_US
dc.subject.stwMehr-Länder-Modellen_US
dc.subject.stwTheorieen_US
dc.titleGeography, non-homotheticity, and industrialization: A quantitative analysisen_US
dc.typeWorking Paperen_US
dc.identifier.ppn726453803en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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