Long-Run Specialization

15 Pages Posted: 8 May 2006

See all articles by Yoshiyasu Ono

Yoshiyasu Ono

Osaka University - Institute of Social and Economic Research (ISER)

Akihisa Shibata

Kyoto University

Abstract

Constructing a dynamic Heckscher-Ohlin model, we examine long-run specialization patterns in the presence of international technological differences. Even a slight difference in technology causes at least one country to specialize. Either the case of perfect specialization in both countries or the case of perfect specialization in one country and imperfect specialization in the other occurs, depending on the subjective discount rate, relative preference for two commodities, labor endowments, and technological conditions. A necessary and sufficient condition for each case to hold is provided. Structural differences between the Ricardian model and ours are also emphasized.

Suggested Citation

Ono, Yoshiyasu and Shibata, Akihisa, Long-Run Specialization. Review of International Economics, Vol. 14, No. 1, pp. 1-15, February 2006. Available at SSRN: https://ssrn.com/abstract=875926 or http://dx.doi.org/10.1111/j.1467-9396.2006.00557.x

Yoshiyasu Ono

Osaka University - Institute of Social and Economic Research (ISER) ( email )

6-1 Mihogaoka
Ibaraki, Osaka 567-0047
Japan

Akihisa Shibata

Kyoto University ( email )

Yoshida-Honmachi, Sakyo-ku
Institute of Economic Research
Kyoto 606-8501
075 753 7198 (Fax)

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