国际经济学 黄敏 第三章

Reasons for Intraindustry Trade
Transportation costs Seasonal Manufacturers
in each country produce for the “majority” consumer tastes within their country while ignoring “minority” consumer tastes Overlapping demand segments in trading countries Economies of scale
Chapter 3 Modern Trade Thoeries

3.1 Existence of Intraindustry Trade 3.2 Technological gap, Product life Cycle and International Trade 3.3 Theory of Overlapping Demands 3.4 Economies of Scale, Imperfect competition, and International Trade 3.5 Reciprocal Dumping
Export of Country A and B
Production of Country A
T0
T1 Demand Lag Response Lag
T2
T3 Grasp Lag
Time Export of Country B Production of Country B
Imitation Lag
3.1 Existence of Intraindustry Trade

Advanced industrial countries have increasingly emphasized intraindustry trade —two-way trade in a similar commodity. Intraindustry trade involves flows of goods with similar factor requirements. countries that are net exporters of manufactured goods embodying sophisticated technology also purchase such goods from other countries.
Industrial machinery
Scientific instruments Transportation equipment Chemicals Apparel and clothing
31.8
29.2 46.1 16.8 8.0
35.2
20.9 20.2 30.2 63.8
3.1 Existence of Intraindustry Trade

T0-T3: the stage of imitation lag


T0-T2: the stage of response lag


T2-T3: the stage of grasp lag


T1-T3 is the trading period caused by technological gap.
3.1 Existence of Intraindustry Trade
Intraindustry Trade in the U.S., 2002 ( in Billion of Dollars)
Category Motor Vehicles Electrical machinery Office machines Telecommunications equipment Power-generating equipment Exports 60.39 82.7 39.7 24.9 34.4 Imports 168.1 81.2 76.9 66.3 34.0
3.3 Theory of Overlapping Demands
Wealthy
(industrial) countries will likely trade with other wealthy countries, and poor (developing) countries will likely trade with other poor countries. The Linder hypothesis is thus known as the theory of overlapping demands.
Model of Product Life Cycle
3.2 Technological Gap, Product Life Cycle and International Trade

O- t1

the introduction of new products
the growing period of products the maturing period of products The innovating country can manufacture the identical cheaper products than the inventing country by native cheap non-skilled labor, sell in the international market and compete with the inventing country. Imitation countries begin to sell products to the inventing country, and the output of the inventing country will decrease so substantially as to come to a full stop. And the life cycle of the products will finish.
3.3 Theory of Overlapping Demands

Linder does not rule out all trade in manufactured goods between wealthy and poor countries.
3.2 Technological Gap, Product Life Cycle and International Trade
Quantity Consumption in Inventing Countries Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Import Export Production in Inventing Countries Production in Imitating Countries Export Import O T1 T2 T3 Consumption in Imitating Countries T4 Time
3.2 Technological Gap, Product Life Cycle and International Trade

The technological gap theory explains the causes of trade among different countries from the perspective of comparative advantage, and proves that leading technology can form comparative advantage even among the countries with close endowments and tastes. However, the theory hasn’t explained the transfer of trade flow and the causes of the emergence and disappearance of technological gap.
Hale Waihona Puke Baidu
3.2 Technological Gap, Product Life Cycle and International Trade

Technological gap is a cause of international trade and determines the flow of international trade.
3.2 Technological Gap, Product Life Cycle and International Trade

The life cycle of products means all products will experience the course of innovation, growth, maturity and decline. The stage of new products The stage of mature technique The stage of standardization
3.2 Technological Gap, Product Life Cycle and International Trade

T0-T1: the stage of demand lag

the time lag from the invention of new products in innovating countries to the acceptance of importing countries. the time interval from the invention of new products in innovating countries to generic production until the import is zero. the time lag from the invention of new products to imitation of importing countries. from imitation to no import until the generic production can meet domestic demand and turn to export.
International Economics
Chapter 3
Modern Trade Theories
Chapter 3 Modern Trade Thoeries

3.1 Existence of Intraindustry Trade 3.2 Technological gap, Product life Cycle and International Trade 3.3 Theory of Overlapping Demands 3.4 Economies of Scale, Imperfect competition, and International Trade 3.5 Reciprocal Dumping
t1-t2

t2-t3

t3-t4


After t4

Chapter 3 Modern Trade Thoeries

3.1 Existence of Intraindustry Trade 3.2 Technological gap, Product life Cycle and International Trade 3.3 Theory of Overlapping Demands 3.4 Economies of Scale, Imperfect competition, and International Trade 3.5 Reciprocal Dumping