Vertical Specialization with Heterogeneous Entrepreneurs: Can Trade Promote Industrialization of Developing Countries?

Tianshu Chu ()

Working Papers from Minnesota - Center for Economic Research

Abstract: This paper explores the theoretical link between trade liberalization and industrial development indeveloping economies. A two-country, three- good, and three-factor computable general equilibrium model is developed, which features a capital-intensive intermediate good, and a special factor of production, the entrepreneurial skill.

Keywords: TRADE; INDUSTRIALIZATION; DEVELOPING COUNTRIES (search for similar items in EconPapers)
JEL-codes: O14 F10 (search for similar items in EconPapers)
Date: 2001

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Persistent link: http://EconPapers.repec.org/RePEc:fth:minner:310

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