Local Comparative Advantage: Trade Costs and the Pattern of Trade

Country Trade Costs , Comparative Advantage and the Pattern of Trade : Multi - Country and Product Panel

This paper investigates whether differences across countries in overall country-specific trade costs affect comparative advantage. It does so by examining whether the commodity composition of countries’ trade is driven by differences in countries’ trade costs, as well as by differences in traditional factor endowments. Industry export shares across up to 71 countries and 158 manufacturing indus...

Trade Costs, Comparative Advantage and the Pattern of Trade: Multi-country and Multi-product Panel Evidence

Trade Costs and Trade Composition: Multi-Country and Product Evidence on Sources of Comparative Advantage

This paper investigates whether differences across countries in overall countryspecific trade costs affect comparative advantage and the commodity composition of trade in similar fashion to international differences in factor endowments. Industry export shares across up to 71 countries and 158 manufacturing industries for five year periods from 1972 to 1992 are shown to be greater in factor-int...

Trade, Development, and Poverty-Induced Comparative Advantage

This paper deals with the relation between trade and development when poverty affects individual decision making. We develop a twosector model that links production and schooling decisions under poverty with standard neo-classical trade analyses. The decision to either work or acquire skills depends on households having reached subsistence levels of income, implying that the income level of a c...

Support for trade restrictions, attitudes, and understanding of comparative advantage

We asked respondents about their attitudes toward restriction of imports, their understanding of the principle of comparative advantage and their attitudes toward globalization and business. Respondents who favored import restrictions scored lower on the test of understanding of comparative advantage, and they had less favorable attitudes toward globalization and toward business. Import restric...