American Economic Review Vol. 77 No. 5 1987
Vertical Product Differentiation and North-South Trade
Abstract
We develop a model of North-South trade in which the North exports high-quality and the South exports low-quality industrial products. Faster technical progress in the southern industrial sector leads the North to introduce new high-quality products and the South to abandon low-quality products. Production of northern low-quality products is shifted to the South. We also study the effects of technical progress in the North and population growth.
- Volume
- 77
- Issue
- 5
- Pages
- 810-822
- Sources
- bibtex:phds-export.bib