Vertical differentiation and trade among symmetric countries
研究对称国家间垂直产品差异化贸易模型,分析人口、生产率和贸易成本如何影响国家在高质量与低质量产品上的专业化分工,结果与现有实证一致。
Abstract We study a trade model with vertical product differentiation with many goods that are heterogeneous in cost and quality and produced in two quality versions. We discuss the composition of high- and low-quality goods in the workers’ consumption baskets in countries between comparable countries. We show that a larger country population fosters its specialization in high-quality production while a higher country productivity leads to specialization in high quality production for all countries. Smaller trade costs foster specialization in high quality exports. We then discuss the effect of population heterogeneity on the consumption baskets and country specialization. Most of those results agree with existing empirical findings.