Intra-National Trade as Channels of Spillovers in Developing Countries
Intra-National Trade as Channels of Spillovers in Developing Countries
- 세종대학교 경제통합연구소
- Journal of Economic Integration
- 제32권 제2호
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2017.06358 - 399 (42 pages)
- 2

We developed a model to explore the comparative advantage based intra-national trade in developing countries, as a contrast to models driven by increasing returns and agglomeration that prevail in the developed world. The model incorporates technological spillovers and trade. The findings suggest that the intra-national trade share of a region is inversely proportional to its technological level, and that economic growth diffuses along the intra-national trade network from the developed country, through the advanced regions of the developing country, into its less developed regions. Internal trade costs exert a multiplied hindering effect, stronger than that of border barriers, on national growth. The statistics derived from China`s 2007 provincial input-output tables provide evidence in favor of the main theoretical findings.
Ⅰ. Introduction
Ⅱ. Literature Review
Ⅲ. Theoretical Analysis
Ⅳ. Empirical Support
Ⅴ. Policy Implications
Ⅵ. Conclusions
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