On the similarity of country endowments

Debaere, Peter; Demiroğlu, Ufuk

doi:10.1016/s0022-1996(02)00092-2

Cited by 69 publications

(78 citation statements)

References 8 publications

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“…Deardorff 1998), but also consistent with a few empirical studies (e.g. Debaere and Demiroglu 1998;Schott 1997). In contrast, a small-open-economy model has factor prices pinned down by exogenous commodity prices, and so fails to fully consider the general equilibrium effects of new goods, and a Heckscher-Ohlin model with one diversification cone and FPE 7 See, for example, Deardorff (1994) and Xiang (2001).…”

Section: Section 1 Introductionsupporting

confidence: 84%

theoretical investigation

2014

Dictionary Geotechnical Engineering/Wörterbuch GeoTechnik

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Section: Section 1 Introductionsupporting

confidence: 84%

theoretical investigation

2014

Dictionary Geotechnical Engineering/Wörterbuch GeoTechnik

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“…This is possible until one or both areas are completely specialized. As drawn, at point b area I still produces both X It is relatively easy to generalize Figure 1 into a country with many areas, and many goods/sectors in a two production factor world, giving rise to the so-called lens condition (Deardorff 1994, Debeare, 2004, Debeare and Demiroglu, 2003. We can rank factor intensities of all sectors according to decreasing skilled-labor/labor intensities above the diagonal (and vice versa below the diagonal) and concatenate the corresponding vectors of factor intensity.…”

mentioning

confidence: 99%

Lumpy countries, urbanization, and trade

Brakman¹,

Marrewijk

2013

Journal of International Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Lumpiness of production factors within a country might overturn the predictions for the structure of trade by the factor-abundance (HO) model. Trade patterns, as predicted by this model, can both be magnified or reversed by uneven concentration of production factors within a country. Cities are the most characteristic manifestation of lumpiness of production factors and as a consequence different patterns of urbanization between countries might cause trade patterns to differ from HO predictions on the basis of the overall availability of production factors. We argue that urbanization indeed affects trade patterns. The consequence of this result is that urbanization should be included in empirical trade analysis; urbanization could, e.g. to the understanding of the 'missing trade' puzzle. Terms of use: Documents in EconStor mayJEL-Code: F110, F150, R120.

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“…However, recent empirical studies such as Debaere and Demiroglu (2003) and Schott (2003) find evidence that suggests that some countries are specialized. In Appendix C, we show that when countries do not possess resources specific to one sector, production specialization is possible, and that under specialization a larger natural endowment always leads the economy to higher capital stocks and income levels in the long-run.…”

Section: Discussion Of Resultsmentioning

confidence: 99%

The curse and blessing of fixed specific factors in small-open economies

Guilló

Pérez-Sebastián

2007

Journal of Development Economics

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This paper investigates how a country's specific-factors endowment affects its long-run economic performance. We build an open-economy version of the twosector neoclassical growth model in which we introduce fixed industry-specific inputs in both activities. We show that differences in input shares between sectors can contribute to explain why nations that seem to have similar factor endowments can show very different income levels. In particular, under (productivity-adjusted) factor-price equalization, larger amounts of factors specific to the industry with a lower (larger) labor share lead the economy to enjoy larger (smaller) long-run income levels. The model can also account for overtaking episodes between countries along their development paths.JEL Classification: O41, F43.

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On the similarity of country endowments

Cited by 69 publications

References 8 publications

theoretical investigation

theoretical investigation

Lumpy countries, urbanization, and trade

The curse and blessing of fixed specific factors in small-open economies

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