Technology, Preference for Quality, and Vertical Intra-Industry Trade

Niem, Le Duc and Kim, Taegi (2010) Technology, Preference for Quality, and Vertical Intra-Industry Trade. Modern Economy, 01 (03). pp. 129-133. ISSN 2152-7245

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Official URL: https://doi.org/10.4236/me.2010.13014

Abstract

This paper provides a simple theoretical model to investigate determinants of the vertical IIT based on Bertrand price competition. We find that the volume of trade is higher among countries where R&D investments are larger. In addition, the vertical IIT share increases with the similarity between two countries in terms of technology and per-capita income. Our theoretical findings are consistent with recent empirical findings.

Item Type:	Article
Subjects:	Institute Archives > Medical Science
Depositing User:	Managing Editor
Date Deposited:	10 Jul 2023 04:13
Last Modified:	12 Oct 2023 05:14
URI:	http://eprint.subtopublish.com/id/eprint/2599

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