Does Economic Geography Matter for International Specialization?

Donald R. Davis () and David Weinstein ()

Working Papers from Harvard - Institute for International Development

Abstract: There are two principal theories of why countries trade: comparative advantage and increasing returns to scale. Yet there is no empirical work that assesses the relative importance of these two theories in accounting for production structure and trade. We use a framework that nests an increasing returns model of economic geography featuring "home market" effects with that of Heckscher-Ohlin. We employ these trade models to account for the structure of OECD manufacturing produciton.

Keywords: TRADE; GEOGRAPHY; PRODUCTION (search for similar items in EconPapers)
JEL-codes: F12 F14 (search for similar items in EconPapers)
Date: 1997
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Related works:
Working Paper: Does Economic Geography Matter for International Specialization? (1996)
Working Paper: Does Economic Geography Matter for International Specialization? (1997)
Working Paper: Does Economic Geography Matter for International Specialization? (1996)
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