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Trade Patterns Among Industrial Countries: Their Relationship to Technology Differences and Capital Mobility
Author: Mika Saito
Series:
IMF Working Papers
Volume/Issue:
Volume 2004: Issue 023
Language:
English
Publication Date:
01 Feb 2004
DOI:
https://doi.org/10.5089/9781451844078.001
ISBN:
9781451844078
ISSN:
1018-5941
Pages:
31
Keywords:
WP; comparative advantage; total factor productivity; labor productivity; capital mobility; neoclassical trade model; industry abbreviation; Ricardian measure; equipment industry; production function; Hicksian measure; textile industries in Japan; Manufacturing; Labor costs; Trade balance
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IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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This paper compares two alternative measures of technology differences across industrial countries during 1970-92: one measures differences in labor productivity (the Ricardian measure), and the other differences in total factor productivity (the Hicksian measure). The distinction between the two measures is important to the extent that trade patterns are inconsistent with comparative advantage revealed by the Hicksian measure, but not necessarily with that by the Ricardian measure. The distinction becomes more important in the period with high capital mobility across countries.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund