Les Cahiers de Recherche - HEC Paris
Input substitutability,trade costs and the product cycle
Abstract: Author's abstract. I exhibit a simple and realistic
feature of technology and trade costs that influences the partition of
manufacturing between the North and South depending on the degree of
substitutability of internationally traded inputs in production.
presence of higher wages in the North, when production of manufacturing
goods requires tradeable, country-specific Ricardian inputs,goods with a
low elasticity of substitution between inputs in production will have lower
costs of manufacturing in the North and those with a high elasticity in the
Keywords: input substitutability; trade costs; north-south trade; product cycle; (follow links to similar papers)
JEL-Codes: D24; F12; O14; R30; (follow links to similar papers)
10 pages, January 19, 2011
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Design Joakim Ekebom