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Aggregation and Applied Trade Theory

Aggregation and Applied Trade Theory

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The influence of data aggregation on applied trade theory may not be generally appreciated. Aggregation can have a direct impact on the direction of trade, factor intensity, factor abundance, factor substitution, product differentiation, and intra-industry trade. This paper develops some propositions for applied trade theorists on the effects of aggregation.

Ⅰ. Introduction

Ⅱ. Aggregation and Product Differentiation

Ⅲ. Aggregation and the Intra-industry Trade Index

Ⅳ. Aggregation and Factor Intensity

Ⅴ. Geographical Aggregation

Ⅵ. Aggregation of Factors

Ⅶ. Conclusion

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