356 research outputs found
An Inframarginal Analysis of the Heckscher-Olin Model with Transaction Costs and Technological Comparative Advantage
In the paper we introduce technological comparative advantage and transaction costs into the Heckscher-Olin (HO) model and refine the HO theorem, the Stolper-Samuelson theorem, the Rybczynski theorem, and factor equalization theorem. The refined core theorems can be used to accommodate recent empirical evidence that is at odds with the core theorems.H-O theorem, factor equalization theorem, Stolper-Samuelson theorem, Rybczynski theorem
A Ricardian Model with Endogenous Comparative Advantage and Endogenous Trade Policy Regimes
This paper develops a general equilibrium model with transaction costs and endogenous and exogenous comparative advantages. In the model, the governments are allowed to choose between tariff war, tariff negotiation, and laissez faire regimes. The model shows that the level of division of labor and the volume of trade increase as transaction conditions improve. In the process of moving to a high level of division of labour, a country may receive more gains from trade even if its terms of trade deteriorate. This is because an expansion of the network size of division of labour can generate productivity gains that outweigh the adverse effect of the terms of trade deterioration. When a high level of division of labor occurs in general equilibrium, if both countries play a Nash tariff game, a tariff war may break out, which can dissipate all the gains from trade. Facing this risk, all governments would prefer trade negotiations to a trade war. A Nash tariff negotiation would result in zero tariff rates. If a medium level of division of labor occurs in general equilibrium, then unilateral tariff protection and unilateral laissez faire policies would coexist. The result provides a plausible story about the evolution of trade policy regimes, and highlights the importance of trade negotiations in achieving trade liberalization.inframarginal analysis of trade theory, Ricardo model, dual structure, underdevelopment
An Infra-marginal Analysis of the Ricardian Model
This paper applies the infra-marginal analysis, which is a combination of marginal and total cost-benefit analysis, to the Ricardian model. It demonstrates that the rule of marginal cost pricing does not always hold. It shows that in a 2x2 Ricardian model, there is a unique general equilibrium and that the comparative statics of the equilibrium involve discontinuous jumps -- as transaction efficiency improves, the general equilibrium structure jumps from autarky to partial division of labor and then to complete division of labor. The paper also discusses the effects of tariff in a model where trade regimes are endogenously chosen. It finds that (1) if partial division of labor occurs in equilibrium, the country that produces both goods chooses unilateral protection tariff, and the country producing a single good chooses unilateral laissez faire policy; (2) if complete division of labor occurs in equilibrium, the governments in both countries would prefer a tariff negotiation to a tariff war. Finally, the paper shows that in a model with three countries the country which does not have a comparative advantage relative to the other two countries and/or which has low transaction efficiency may be excluded from trade.Ricardo model, trade policy, division of labor
How do Internet applications affect process innovation in Chinese manufacturing companies?
This study distinguishes between two dimensions of firm process
innovation, namely, quantity and quality, and uses data from the
World Bank’s China Manufacturing Firm Survey to analyse the differential
impact of Internet applications on the quantity and quality
of process innovation and their mechanisms of action. Internet
applications have a significant facilitating effect on the quantity
and quality of process innovation. However, from the perspective
of the average marginal effect, the facilitating effect of Internet
applications on the quantity of process innovation is greater than
that on the quality of process innovation. Further analysing firm
size, industry, ownership, and regional heterogeneity shows that in
terms of the quantity of process innovation, Internet applications
have a greater impact on small- and medium-sized firms, labourintensive
firms, non-state-owned firms, and eastern firms. As for the
quality of process innovation, Internet applications have a stronger
promoting effect on large firms, technology-intensive firms, and
state-owned firms. The mechanism test reveals that open innovation
and informatisation capability play a mediating role in the
influence of a firm’s Internet applications on process innovation.
This study provides micro-empirical evidence for firms’ Internet
applications to promote process innovation and policy insights into
China’s manufacturing transformation and upgrading
Convergence of the PML method for the biharmonic wave scattering problem in periodic structures
This paper investigates the scattering of biharmonic waves by a
one-dimensional periodic array of cavities embedded in an infinite elastic thin
plate. The transparent boundary conditions are introduced to formulate the
problem from an unbounded domain to a bounded one. The well-posedness of the
associated variational problem is demonstrated utilizing the Fredholm
alternative theorem. The perfectly matched layer (PML) method is employed to
reformulate the original scattering problem, transforming it from an unbounded
domain to a bounded one. The transparent boundary conditions for the PML
problem are deduced, and the well-posedness of its variational problem is
established. Moreover, exponential convergence is achieved between the solution
of the PML problem and that of the original scattering problem
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