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Title: |
Domestic Trade and Transport Costs in International Trade Theory |
| Author: |
Rousslang,
Donald J. |
| Author
Affiliation: |
US Dept of the
Treasury and George Washington U |
| Source: |
International Economic Journal, Summer 1991, v. 5, no. 2, pp. 49-61 |
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Publication Date: |
Summer 1991 |
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Abstract: |
This paper examines the effects that
domestic trade and transport margins have on international trade and the
consequences for the central trade theorems. Specifically, the
Heckscher-Ohlin-Samuelson model is expanded to include a third industry
that produces the nontraded domestic services in transportation,
warehousing, wholesaling and retailing required to market goods to final
purchasers. It is found that the domestic margins probably impose
substantial natural trade barriers and that they can cause the central
trade theorems (factor-price equalization, Stolper-Samuelson, and
Rybczynski) to fail. |
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