Standardization of intermediate goods and international trade

This paper analyzes the relationship between standardization of intermediate inputs and international trade. We employ a two-country, general equilibrium model with differentiated manufacturing goods. Production of manufacturing goods requires specific intermediate inputs, which can be either specia...

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Bibliographic Details
Published in:The Canadian journal of economics 2008-05, Vol.41 (2), p.517-536
Main Authors: Lorz, Oliver, Wrede, Matthias
Format: Article
Language:English
Subjects:
Capital costs
Correlation analysis
Countries
Economic costs
Economic models
Economies of scale
F12
Final goods
Intermediate goods
International trade
L11
Manufacturing
Monopoly
Standardization
Studies
Supply
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Summary:This paper analyzes the relationship between standardization of intermediate inputs and international trade. We employ a two-country, general equilibrium model with differentiated manufacturing goods. Production of manufacturing goods requires specific intermediate inputs, which can be either specialized or standardized. Standardization and the pattern of trade are determined endogenously in our model. In this framework we derive the effects of trade integration, that is, a decline in trading costs for intermediate goods, on the equilibrium outcome. /// Ce mémoire analyse la relation entre la standardisation des intrants intermédiaires et le commerce international. On emploie un modèle d'équilibre général pour deux pays avec des biens manufacturés différenciés. La production des biens manufacturiers requiert des intrants intermédiaires spécifiques qui peuvent être spécialisés ou standardisés. La standardisation et le pattern du commerce sont déterminés de façon endogène dans le modèle. Dans ce cadre d'analyse, on dérive les effets de l'intégration commerciale, i.e. un déclin dans les coûts de transaction pour les biens intermédiaires, sur l'équilibre général.
ISSN:0008-4085
1540-5982
DOI:10.1111/j.1540-5982.2008.00473.x