Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/18080 
Year of Publication: 
2003
Series/Report no.: 
DIW Discussion Papers No. 344
Publisher: 
Deutsches Institut für Wirtschaftsforschung (DIW), Berlin
Abstract: 
Policy makers in "small" countries facing trade liberalisation have become concerned with the potential loss of manufacturing employment and output to "large" economies in the presence of economies of scale in production and international transport costs. This paper offers a methodology to estimate the "home market" effect for numerous industries, after accounting for transport costs and traditional comparative advantage effects. The empirical results suggest significant home-market effects in many manufacturing industries which may be capital intensive or labour intensive.
Subjects: 
Home-market effect
comparative advantage
bilateral trade
factor endowment
gravity model
JEL: 
F12
Document Type: 
Working Paper

Files in This Item:
File
Size
1.03 MB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.