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Distribution Costs and International Trade: A Ricardian Model

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  • Bandyopadhyay, Usree

Abstract

This paper studies the role of the distribution sector in determining a country's pattern and terms of trade. The effect of an improvement in distribution technology is analyzing using a Ricardian trade modal with a endogenous distribution sector. The results are found to depend on the magnitude of distribution costs relative to manufacturing costs and preference for distribution services in the trading countries. This has important implication for the Structural Impediments Initiative, which maintains that a more efficient distribution sector in Japan would benefit both the USA and Japan. Copyright 1998 by Blackwell Publishing Ltd.

Suggested Citation

  • Bandyopadhyay, Usree, 1998. "Distribution Costs and International Trade: A Ricardian Model," Review of International Economics, Wiley Blackwell, vol. 6(1), pages 164-178, February.
    • Handle: RePEc:bla:reviec:v:6:y:1998:i:1:p:164-78
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    Cited by:

    1. repec:ebl:ecbull:v:6:y:2008:i:24:p:1-5 is not listed on IDEAS
    2. Toru Kikuchi, 2008. "Distribution Costs, International Trade and Industrial Location," Economics Bulletin, AccessEcon, vol. 6(24), pages 1-5.
    3. Makoto Yano & Fumio Dei, 2003. "Trade, Vertical Production Chain, and Competition Policy," Review of International Economics, Wiley Blackwell, vol. 11(2), pages 237-252, May.
    4. Odagiri, Tokumi & Riethmuller, Paul, 2000. "Japan's Large Scale Retail Store Law: a cause of concern for food exporters?," Agricultural Economics, Blackwell, vol. 22(1), pages 55-65, January.

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