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GTAP Resource #3435

"Global Production Sharing and Trade in the Services of Factors"
by Reimer, Jeff

This article develops an approach to measuring the factor content of trade when intermediate inputs are traded, and techniques differ for reasons such as factor price differences. An empirical section documents the importance of intermediates and shows that they mitigate cross-country differences in the factor content of finished goods. The performance of recent models of factor service trade is also evaluated. Existing approaches impute the factor content of imported intermediates with domestic techniques and tend to overstate how well those models perform. The framework developed here can help reconcile generalequilibrium trade models with actual patterns of trade.

Resource Details (Export Citation) GTAP Keywords
Category: GTAP Application
Status: Published
By/In: Journal of International Economics 68(2):384-408n
Date: 2006
Created: Reimer, J. (9/10/2010)
Updated: Reimer, J. (9/10/2010)
Visits: 875
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