Economics at your fingertips  

Should small countries fear deindustrialization ?

Ai Ting Goh and Tomasz Michalski ()

Post-Print from HAL

Abstract: Will small countries deindustrialize when opening up to trade with large countries? Donald Davis (1998) shows that for the home market effect to lead to deindustrialization of small countries, trade costs for homogeneous goods must be sufficiently smaller than trade costs in differentiated goods, a condition which is not supported by empirical evidence. We show that if differentiated goods production uses tradable inputs small countries can become deindustrialized when trading with a sufficiently large country and if trade costs are low.

Keywords: Deindustrialization; small countries (search for similar items in EconPapers)
Date: 2010-09
Note: View the original document on HAL open archive server:
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Published in Review of International Economics, Wiley, 2010, 18 (4), pp.607-617. ⟨10.1111/j.1467-9396.2010.00899.x⟩

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

Related works:
Journal Article: Should Small Countries Fear Deindustrialization? (2010) Downloads
Working Paper: Should small countries fear deindustrialization ? (2009) Downloads
Working Paper: Should small countries fear deindustrialization? (2009)
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:

DOI: 10.1111/j.1467-9396.2010.00899.x

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().

Page updated 2021-03-28
Handle: RePEc:hal:journl:hal-00521799