open access

https://hdl.handle.net/2115/84342

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

英語

2020-02

John Wiley & Sons

Review of international economics

28(1)

119-137

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.

学術雑誌論文

Version of Record

0965-7576