Intra-National Trade as Channels of Spillovers in Developing Countries

Yong He (yong.he@uca.fr)
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Yong He: Université Clermont-Auvergne, Postal: CERDI-CNRS, Université Clermont-Auvergne, 65 Bd. François Mitterrand, 63000, Clermont Ferrand, France

Journal of Economic Integration, 2017, vol. 32, issue 2, 358-399

Abstract: We developed a model to explore the comparative advantage based intra-national trade in developing countries, as a contrast to models driven by increasing returns and agglomeration that prevail in the developed world. The model incorporates technological spillovers and trade. The findings suggest that the intra-national trade share of a region is inversely proportional to its technological level, and that economic growth diffuses along the intra-national trade network from the developed country, through the advanced regions of the developing country, into its less developed regions. Internal trade costs exert a multiplied hindering effect, stronger than that of border barriers, on national growth. The statistics derived from China’s 2007 provincial input-output tables provide evidence in favor of the main theoretical findings.

Keywords: Comparative Advantage-based Intra-national Trade; Intra-national Spillovers; Regional Input-output Tables; Regional Disparity; Endogenous Growth Model (search for similar items in EconPapers)
JEL-codes: F01 O10 O30 O40 R10 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ris:integr:0715

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