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Goods, Services and Trade

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  • Djajic, Slobodan
  • Kierzkowski, Henryk

Abstract

Within the framework of the Heckscher-Ohlin model, this paper addresses some of the positive issues related to trade in durable goods, nondurables, and services. The pattern of trade between countries is analyzed under two of a number of possible regimes governing trade in services. In one case, only durables and nondurables can be traded internationally; in the other, the firms exporting durables also service the units sold abroad. The volume and direction of trade in goods is shown to be determined not only by factor endowments of countries, but also by whether or not services are tradable. Copyright 1989 by The London School of Economics and Political Science.

Suggested Citation

  • Djajic, Slobodan & Kierzkowski, Henryk, 1989. "Goods, Services and Trade," Economica, London School of Economics and Political Science, vol. 56(221), pages 83-95, February.
    • Handle: RePEc:bla:econom:v:56:y:1989:i:221:p:83-95
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    Cited by:

    1. Ishikawa, Jota & Morita, Hodaka & Mukunoki, Hiroshi, 2010. "FDI in post-production services and product market competition," Journal of International Economics, Elsevier, vol. 82(1), pages 73-84, September.
    2. Jota Ishikawa & Hodaka Morita & Hiroshi Mukunoki, 2016. "Trade liberalization and aftermarket services for imports," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 62(4), pages 719-764, October.
    3. Christopher Findlay, 1990. "Trade in Services in the Asia‐Pacific Region," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 4(2), pages 3-20, September.
    4. van Marrewijk, Charles & Stibora, Joachim & de Vaal, Albert & Viaene, Jean-Marie, 1997. "Producer services, comparative advantage, and international trade patterns," Journal of International Economics, Elsevier, vol. 42(1-2), pages 195-220, February.
    5. Bianka Dettmer, 2012. "Business services outsourcing and economic growth: Evidence from a dynamic panel data approach," Jena Economics Research Papers 2012-049, Friedrich-Schiller-University Jena.

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