A Theory of Just-in-Time and the Growth in Manufacturing Trade

John Dalton ()

MPRA Paper from University Library of Munich, Germany

Abstract: This paper argues the widespread adoption of Just-in-Time (JIT) logistics provides a key to understanding the growth in the U.S. trade share. To do so, I develop a dynamic trade model based on the choice of the logistics technology used in a firm's supply chain. The model's predicted trade dynamics depend on how the set of firms using JIT with international suppliers changes over time. A numerical example shows the model is capable of generating growth in the trade share. I present evidence showing the theory is consistent with aggregate data as well as industry-level panel data.

Keywords: trade growth; Just-in-Time; newsvendor problem; airplane transportation (search for similar items in EconPapers)
JEL-codes: F10 F14 L60 M11 (search for similar items in EconPapers)
Date: 2013-01
New Economics Papers: this item is included in nep-bec and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:48223

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