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Market Size and Factor Endowment: Explaining Comparative Advantage in Bilateral Trade by Differences in Income and Per Capita Income

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dc.creator Schumacher, Dieter
dc.date 2001
dc.date.accessioned 2013-10-16T06:59:04Z
dc.date.available 2013-10-16T06:59:04Z
dc.date.issued 2013-10-16
dc.identifier http://hdl.handle.net/10419/18243
dc.identifier ppn:336175302
dc.identifier.uri http://koha.mediu.edu.my:8181/xmlui/handle/10419/18243
dc.description 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.
dc.language eng
dc.publisher Deutsches Institut für Wirtschaftsforschung (DIW) Berlin
dc.relation DIW-Diskussionspapiere 259
dc.rights http://www.econstor.eu/dspace/Nutzungsbedingungen
dc.subject F12
dc.subject ddc:330
dc.subject Gravity model
dc.subject comparative advantage
dc.subject bilateral trade
dc.subject home market effect
dc.subject factor endowment
dc.subject Internationale Wirtschaftsbeziehungen
dc.subject Außenwirtschaft
dc.subject Gravitationsmodell
dc.subject Komparativer Kostenvorteil
dc.subject Landesgröße
dc.subject Volkseinkommen
dc.subject Faktorproportionentheorem
dc.subject Sozialprodukt
dc.subject Schätzung
dc.subject Theorie
dc.subject Welt
dc.subject Marktgröße
dc.title Market Size and Factor Endowment: Explaining Comparative Advantage in Bilateral Trade by Differences in Income and Per Capita Income
dc.type doc-type:workingPaper


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