Input substitutability, trade costs and the product cycle
Tomasz Michalski
Working Papers from HAL
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-specic 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)
Date: 2011-01
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Published in 2011
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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:hal:wpaper:hal-00579392
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