International Trade in Manufactured Products: A Ricardo-Heckscher-Ohlin Explanation with Monopolistic Competition

Ehsan Choudhri () and Dalia Hakura

No 2001/041, IMF Working Papers from International Monetary Fund

Abstract: A large data set on trade in manufactured products is used to evaluate the performance of a model that combines both the Ricardian and Heckscher-Ohlin effects and incorporates monopolistic competition. The paper estimates a relation implied by the model to explain relative sectoral exports of major countries to a number of important markets, using 1970-90 data for nine manufacturing sectors. The relation fits the data well and variables suggested by both traditional and new trade models play an important role in explaining relative exports.

Keywords: WP; least squares; monopolistic competition; Ricardian and Heckscher-Ohlin models; TFP ratio; Ricardian model; composite-factor cost ratio; export relation; productivity variable; TFP relations; Exports; Total factor productivity; Productivity; Trade barriers; Competition; East Asia; Western Europe; Eastern Europe (search for similar items in EconPapers)
Pages: 27
Date: 2001-03-01
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:imf:imfwpa:2001/041

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