Vertical specialization in North-South trade : Industrial relocation, wage and welfare


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Please use this identifier to cite or link to this item:http://hdl.handle.net/2115/84342

Title:	Vertical specialization in North-South trade : Industrial relocation, wage and welfare
Authors:	Kurata, Hiroshi Browse this author
	Nomura, Ryoichi Browse this author
	Suga, Nobuhito Browse this author →KAKEN DB
Issue Date:	Feb-2020
Publisher:	John Wiley & Sons
Journal Title:	Review of international economics
Volume:	28
Issue:	1
Start Page:	119
End Page:	137
Publisher DOI:	10.1111/roie.12444
Abstract:	This paper presents a North-South trade model with vertically linked industries and examines how declining costs of trade across stages of production encourage vertical specialization and affect wages and welfare. As trade costs fall below a threshold, the production of all final goods relocates to the South and vertical specialization emerges. In some industries, production of intermediate goods also relocates against comparative costs because of benefits of co-location, and further declines in trade costs lead to reshoring. A country may temporarily lose from falling trade costs, but both countries can be better off after trade costs fall sufficiently.
Type:	article
URI:	http://hdl.handle.net/2115/84342
Appears in Collections:	経済学院・経済学研究院 (Graduate School of Economics and Business / Faculty of Economics and Business) > 雑誌発表論文等 (Peer-reviewed Journal Articles, etc)

Submitter: 須賀宣仁

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