Proximity as a Source of Comparative Advantage

Abstract : This paper establishes that production unbundling has coincided with an inscreasing role of input costs in shaping the pattern of comparative advantage. I show that the wedge in the cost of the input bundle across countries in a multisectoral Ricardian model is given by a composite index of trade frictions incurred in sourcing inputs. As the cost share of inputs is sector-specific this wedge becomes source of comparative advantage whereby countries characterized by relatively high proximity to input suppliers specialize in sectors which use inputs more intensively. I find robust empirical evidence that the input cost channel has growing importance over 1995-2009. Nonetheless, consistently with the fundamental intuition of Ricardian models, the ranking of relative sectoral technology stocks still determines intersectoral specialization. Between 53-55% of intersectoral variation in relative sectoral exports is explained by technology while the input cost channel contributes 3 to 8% in the full sample, and 3 to 13% for the EU-15.
Type de document :
Pré-publication, Document de travail
2013
Liste complète des métadonnées

Littérature citée [25 références]  Voir  Masquer  Télécharger

https://hal-sciencespo.archives-ouvertes.fr/hal-01070440
Contributeur : Spire Sciences Po Institutional Repository <>
Soumis le : mercredi 1 octobre 2014 - 12:38:39
Dernière modification le : mardi 11 octobre 2016 - 13:42:14
Document(s) archivé(s) le : vendredi 2 janvier 2015 - 11:00:13

Fichier

dp2013-05archanskaia-1.pdf
Accord explicite pour ce dépôt

Identifiants

Collections

Citation

Elizaveta Archanskaia. Proximity as a Source of Comparative Advantage. 2013. 〈hal-01070440〉

Partager

Métriques

Consultations de la notice

366

Téléchargements de fichiers

99