Home > Research > Publications & Outputs > Country size and trade in intermediate and fina...

Electronic data

  • AdamSmith WE 4

    Rights statement: This is the peer reviewed version of the following article: SSoo KT. Country size and trade in intermediate and final goods. World Econ. 2018;41:634–652. https://doi.org/10.1111/twec.12538 which has been published in final form at http://onlinelibrary.wiley.com/doi/10.1111/twec.12538/abstract This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.

    Accepted author manuscript, 269 KB, PDF document

    Available under license: CC BY-NC: Creative Commons Attribution-NonCommercial 4.0 International License

Links

Text available via DOI:

View graph of relations

Country size and trade in intermediate and final goods

Research output: Contribution to Journal/MagazineJournal articlepeer-review

Published
<mark>Journal publication date</mark>02/2018
<mark>Journal</mark>The World Economy
Issue number2
Volume41
Number of pages19
Pages (from-to)634-652
Publication StatusPublished
Early online date18/08/17
<mark>Original language</mark>English

Abstract

This paper documents a negative relationship between country size and the share of final consumption goods in total exports. A model is developed, based on the division of labour and comparative advantage, to explain this relationship. Labour is used to produce traded intermediate inputs which are used in the production of traded final goods. Large countries gain relatively more from comparative advantage than from the division of labour, while the opposite is true for small countries. As in the data, large countries export a smaller share of final goods and a larger share of intermediate goods than small countries. It is shown that the model developed in the paper yields the same results as a model based on monopolistic competition.

Bibliographic note

This is the peer reviewed version of the following article: SSoo KT. Country size and trade in intermediate and final goods. World Econ. 2018;41:634–652. https://doi.org/10.1111/twec.12538 which has been published in final form at http://onlinelibrary.wiley.com/doi/10.1111/twec.12538/abstract This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving.