{"title":"A Theory of Gains from New Imported Inputs","authors":"Akira Sasahara","doi":"10.5652/INTERNATIONALECONOMY.IE2012.03.AS","DOIUrl":null,"url":null,"abstract":"This paper analyzes the impact of trade liberalization in an intermediate-good sector on a final-good sector using a general equilibrium model. The model clarifies that the finaland intermediate-good sectors gain from trade through distinct mechanisms. Trade in intermediate-goods leads to tougher competition in the intermediate-good sector, which in turn leads to productivity growth in the sector. Final-good producers benefit from the new entry of foreign suppliers. Moreover, the model shows the economic environment and the channel each sector gains from the most. JEL Classification: F12, F14, L22","PeriodicalId":22492,"journal":{"name":"The International economy","volume":null,"pages":null},"PeriodicalIF":0.0000,"publicationDate":"2013-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"The International economy","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.5652/INTERNATIONALECONOMY.IE2012.03.AS","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 0
Abstract
This paper analyzes the impact of trade liberalization in an intermediate-good sector on a final-good sector using a general equilibrium model. The model clarifies that the finaland intermediate-good sectors gain from trade through distinct mechanisms. Trade in intermediate-goods leads to tougher competition in the intermediate-good sector, which in turn leads to productivity growth in the sector. Final-good producers benefit from the new entry of foreign suppliers. Moreover, the model shows the economic environment and the channel each sector gains from the most. JEL Classification: F12, F14, L22
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