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Global production sharing and trade in the services of factors
This article develops an approach to measuring the factor content of trade when intermediate inputs are traded, and techniques differ for reasons such as factor price differences. An empirical section documents the importance of intermediates and shows that they mitigate cross-country differences in...
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Published in: | Journal of international economics 2006-03, Vol.68 (2), p.384-408 |
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container_end_page | 408 |
container_issue | 2 |
container_start_page | 384 |
container_title | Journal of international economics |
container_volume | 68 |
creator | Reimer, Jeffrey J. |
description | This article develops an approach to measuring the factor content of trade when intermediate inputs are traded, and techniques differ for reasons such as factor price differences. An empirical section documents the importance of intermediates and shows that they mitigate cross-country differences in the factor content of finished goods. The performance of recent models of factor service trade is also evaluated. Existing approaches impute the factor content of imported intermediates with domestic techniques and tend to overstate how well those models perform. The framework developed here can help reconcile general-equilibrium trade models with actual patterns of trade. |
doi_str_mv | 10.1016/j.jinteco.2005.07.007 |
format | article |
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issn | 0022-1996 1873-0353 |
language | eng |
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source | International Bibliography of the Social Sciences (IBSS); Elsevier |
subjects | Comparative advantage Cross-national analysis Economic models Empirical tests Factor content Heckscher–Ohlin Intermediates International economics International trade Production Studies Technology Trade in services World economy |
title | Global production sharing and trade in the services of factors |
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