Input substitutability,trade costs and the product cycle

Tomasz Michalski

No 945, HEC Research Papers Series from HEC Paris

Abstract: Author's abstract. I exhibit a simple and realistic feature of technology and trade costs that influences the partition of manufacturing between the North and South depending on the degree of substitutability of internationally traded inputs in production.

In the presence of higher wages in the North, when production of manufacturing goods requires tradeable, country-specific Ricardian inputs,goods with a low elasticity of substitution between inputs in production will have lower costs of manufacturing in the North and those with a high elasticity in the South.

Keywords: input substitutability; trade costs; north-south trade; product cycle (search for similar items in EconPapers)
JEL-codes: D24 F12 O14 R30 (search for similar items in EconPapers)
Pages: 10 pages
Date: 2011-01-19
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http://www.hec.fr/heccontent/download/4743/114784/ ... 945_T._MICHALSKI.pdf (application/pdf)

Related works:
Working Paper: Input substitutability, trade costs and the product cycle (2011)
Working Paper: Input substitutability, trade costs and the product cycle (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:ebg:heccah:0945

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