How Does Industrialization Affect the Structure of International Trade? the Japanese Experience in the Pacific Basin, 1975-85

August 1, 1994

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Sayuri Shirai. How Does Industrialization Affect the Structure of International Trade? the Japanese Experience in the Pacific Basin, 1975-85, (USA: International Monetary Fund, 1994) accessed December 26, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper provides a theoretical model to address the issue of how industrialization affects the structure of international trade. Considering both horizontal and vertical product differentiation, the model shows that intra-industry trade increases when product quality improvement emerges in a developing country and when a difference in relative factor endowments between a developed and a developing countries shrinks. To promote understanding of the conclusions of the model, the paper also uses actual trade data between Japan and Indonesia and between Japan and Korea.

Subject: Agricultural commodities, Commodities, Development, Economic sectors, Exports, Imports, Industrialization, International trade, Manufacturing

Keywords: Agricultural commodities, Developing country, East Asia, Exports, IIT index, Imports, Industrialization, Industry index, Industry trade, Intra-industry trade, Manufactures aggregate, Manufacturing, Trade volume, WP

Publication Details

Pages:

40
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1994/095
Stock No:

WPIEA0951994
ISBN:

9781451851779
ISSN:

1018-5941

Notes

Study based on actual trade data between Japan and Indonesia and between Japan and Korea.

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