| Intra-National Trade as Channels of Spillovers in Developing Countries |
Yong He, |
| CERDI-CNRS, Université Clermont-Auvergne, Clermont-Ferrand, France |
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Corresponding Author:
Yong He ,Tel: +33473177500, Fax: +33473177428, Email: yong.he@uca.fr |
| Copyright ©2017 The Journal of Economic Integration |
| ABSTRACT |
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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.
JEL Classification
F1: Trade
O1: Economic Development
O3: Technological Change; Research and Development; Intellectual Property Rights
O4: Economic Growth and Aggregate Productivity
R1: General Regional Economics |
| Keywords:
Comparative Advantage-based Intra-national Trade | Intra-national Spillovers | Regional Input-output Tables | Regional Disparity | Endogenous Growth Model
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