Three essays on the factor content of trade

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Three essays on the factor content of trade

Please use this identifier to cite or link to this item: http://hdl.handle.net/10355/6176

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dc.contributor.advisor Trindade, Vitor (Vitor M.) en_US
dc.contributor.author Kim, Yeon Joon, 1973- en_US
dc.date.accessioned 2010-02-25T17:47:38Z
dc.date.available 2010-02-25T17:47:38Z
dc.date.issued 2009 en_US
dc.date.submitted 2009 Spring en_US
dc.identifier.other KimY-050409-D1230 en_US
dc.identifier.uri http://hdl.handle.net/10355/6176
dc.description Title from PDF of title page (University of Missouri--Columbia, viewed on Feb 15, 2010). en_US
dc.description The entire thesis text is included in the research.pdf file; the official abstract appears in the short.pdf file; a non-technical public abstract appears in the public.pdf file. en_US
dc.description Dissertation advisor: Dr. Vitor Trindade. en_US
dc.description Vita. en_US
dc.description Includes bibliographical references. en_US
dc.description Ph. D. University of Missouri--Columbia 2009. en_US
dc.description Dissertations, Academic -- University of Missouri--Columbia -- Economics. en_US
dc.description.abstract This dissertation investigates the factor content of trade. This dissertation consists of three chapters that explain the factor content of trade with different methodologies. The first chapter is Demand Effects in International Trade. We supplement prevalent international trade theory based on supply-side and extend the Heckscher-Ohlin-Vanek model in a new direction by incorporating demand-side consideration. These have been important in the "lore" of economics but not in economics research practice. We focus on aggregate demand differences across different countries that are induced by inequality in the presence of nonhomothetic preferences. We have constructed a new rich dataset that has information on consumption, trade, and factor usage for 32 countries across 45 industries that span the whole economy, for a year circa 2000. We fit the data for different types of preference assumptions, which allows us estimate preference parameters. We then use these results, plus our new demand-side methodology, to compare the relative importance of the supply-side and the demand-side in accounting for global factor trade. The second chapter, has the title the Relevance of Trade Costs for the Factor Content of Trade: A Comparison of the Trans-Atlantic and the Intra-European Trade, extends the original Heckscher-Ohlin-Vanek (HOV) model in a modified direction, with a consideration of the pairwise HOV model. Moreover, the original HOV model and the pair-wise HOV model both assume that there are no trade costs. This chapter studies the relevance of trade costs by comparing the fit of the factor content methodology for the trans-Atlantic trade (that is, trade between the United States and several European countries), and the purely intra-European trade (that is, trade among the largest five European economies). This chapter also examines trade data that includes Australia and Canada. Note by using the trans-Atlantic countries with Australia and Canada, this chapter argues that the trans-Atlantic trade with Australia and Canada has higher trade costs than the intra-European trade. The sign test performs well without major amendments, but simply by restricting trade to the intra-European trade. The evidence presented in this chapter is at least suggestive that trade costs may play a very significant role in trade, and therefore in the calculation of the factor content of trade. The third chapter is the Factor Content of Trade with Trade Costs. This chapter expands upon the original HOV model by considering trade costs. It deduces the original HOV model with trade costs and compares the importance of the original HOV model with and without trade costs. It does so by including trade costs directly in the technology matrix, where the working assumption is that the trade costs are located in the original country. Additionally, this chapter includes trade costs directly in the vector of the net exports. This chapter concludes that the original HOV model with trade costs achieves better results than the model without trade costs using the data constructed for the purpose of this chapter. These test results show that trade costs play an important role in explaining the factor content of trade. en_US
dc.format.extent x, 122 pages en_US
dc.language.iso en_US en_US
dc.publisher University of Missouri--Columbia en_US
dc.relation.ispartof 2009 Freely available dissertations (MU) en_US
dc.subject.lcsh International trade -- Mathematical models en_US
dc.subject.lcsh International trade -- Costs en_US
dc.subject.lcsh Comparative advantage (International trade) en_US
dc.subject.lcsh Heckscher-Ohlin principle en_US
dc.title Three essays on the factor content of trade en_US
dc.type Thesis en_US
thesis.degree.discipline Economics en_US
thesis.degree.grantor University of Missouri--Columbia en_US
thesis.degree.name Ph. D. en_US
thesis.degree.level Doctoral en_US
dc.identifier.oclc 516452301 en_US
dc.relation.ispartofcommunity University of Missouri-Columbia. Graduate School. Theses and Dissertations. Dissertations. 2009 Dissertations


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