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Intra-National Trade as Channels of Spillovers in Developing Countries

Abstract : 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.
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Contributor : Cerdi Etudes & Documents - Publications <>
Submitted on : Friday, January 12, 2018 - 1:52:31 PM
Last modification on : Tuesday, February 23, 2021 - 9:40:02 AM

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Yong He. Intra-National Trade as Channels of Spillovers in Developing Countries. Journal of Economic Integration, Center for Economic Integration, Sejong Institution, Sejong University, 2017, 32 (2), pp.358 - 399. ⟨10.11130/jei.2017.32.2.358⟩. ⟨hal-01682668⟩



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