Diversification cones, trade costs and factor market linkages

• 成果类型: Article
• 署名作者: Xiang, Chong
• 署名单位: Purdue University System; Purdue University
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2006.07.008
• 发表日期: 2007
• 页码: 448-466
• 关键词: diversification cone; cumulative distribution function (cdf); Stochastic dominance test; Trade cost; Kolmogorov-Smirnov (KS) statistics

摘要

This paper finds non-uniform differences in the distribution functions of factor usage intensities among 10 rich OECD countries. The 10 countries form three distinct groups such that the between-group differences are more pronounced than within-group differences and capital-abundant countries are in capital-abundant groups. The estimation works even if the same industry codes represent different goods across countries in the data. The finding is consistent with the multiple-cone factor proportions theory with zero trade costs with each group being one cone. An alternative interpretation is non-zero trade costs. Both interpretations imply weak factor market linkages between the countries in different groups. (C) 2006 Elsevier B.V. All rights reserved.