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2009
Economic development and trade of quality differentiated goods.
Economic development and trade of quality differentiated goods.
한국경제학회
논문정보
- Publisher
- The Korean Economic Review
- Issue Date
- 2009-12-21
- Keywords
- -
- Citation
- -
- Source
- -
- Journal Title
- -
- Volume
- 25
- Number
- 2
- Start Page
- 367
- End Page
- 385
- DOI
- ISSN
- 1226377X
Abstract
In this paper, we investigate the impact of economic development on
international trade from a theoretical perspective, which considers qualitydifferentiated
products and preference diversity for quality. We model two
trading partners, and evaluate the effects of per capita income and
technology on trade volume and intra-industry trade. We show that the
volume of trade and the share of intra-industry trade increases as per capita
income increases. Furthermore, we also demonstrate that the volume of
trade is proportional to the level of technology, and that the intra-industry
trade share increases as the technology in the two countries become similar.
This theoretical model may explain why trade volume and intra-industry
trade tend to be higher in rich countries than in poor countries.
- 전남대학교
- KCI
- The Korean Economic Review
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