Pure Intermediate Products

Raveendra N. Batra

Chapter 8 in Studies in the Pure Theory of International Trade, 1973, pp 180-201 from Palgrave Macmillan

Abstract: Abstract In the previous chapter our analysis focused entirely on the implications of inter-industry flows for various theorems in trade theory. As noted there, most of the trade literature on intermediate products concerns the commodities which serve the dual role of goods used for final consumption and as productive inputs. However, there exists another class of intermediate goods which are produced solely to be used as productive inputs and not for final consumption at all. Such goods may be called pure intermediate goods, and include produced inputs like raw materials, spare parts, steel, etc. The current literature in trade theory pays scant attention to the implications of such products. If the ramifications of pure intermediate products ran closely parallel to those of inter-industry flows, the current neglect of the former could be easily vindicated. However, as will be demonstrated in this chapter, there are important differences between the implications of the two types of material inputs, crucial among them being the fact that, unlike with the inter-industry flows, the gross and net factor-intensity rankings need not be identical in the presence of pure intermediate products. This implies that those traditional theorems in trade theory that depend exclusively on the nature of the differences between the factor intensities in the two final products may no longer be valid in the model that allows for the presence of pure intermediate products, even though these theorems continued to be valid in the model with inter-industry flows.

Keywords: Home Country; Free Trade; Technical Progress; Final Good; Intermediate Good (search for similar items in EconPapers)
Date: 1973
References: Add references at CitEc
Citations: View citations in EconPapers (31)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-01423-1_8

Ordering information: This item can be ordered from
http://www.palgrave.com/9781349014231

DOI: 10.1007/978-1-349-01423-1_8

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().