Aggregation and Applied Trade Theory

Thompson, Henry

doi:2005.20.3.604

The Journal of Economic Integration 2005 September;20(3) :604-612.
DOI: https://doi.org/10.11130/jei.2005.20.3.604

Aggregation and Applied Trade Theory

Henry Thompson,

Auburn University

ABSTRACT

The influence of data aggregation on applied trade theory may not be generally appreciated. Aggregation can have a direct impact on the direction of trade, factor intensity, factor abundance, factor substitution, product differentiation, and intra-industry trade. This paper develops some propositions for applied trade theorists on the effects of aggregation.

JEL Classification

F10: General
F11: Neoclassical Models of Trade
F12: Models of Trade with Imperfect Competition and Scale Economies

Keywords: Aggregation | Applied trade theory | Homogeneous | Heterogeneous | Intra-industry trade

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