What Do Rich Countries Trade with Each Other? R&D and the Composition of U.S. and Swedish Trade
Robert E. Lipsey
A long tradition in international economics explains comparative advantage
by differences between countries in their stage of development, or their
endowments of land, labor, and capital, and suggests that universal development
will reduce the importance of trade. Sweden and the United States
possess similar factor endowments and have converged in overall productivity,
but their bilateral trade has grown. The example of these two countries
suggests that mutual technological progress may promote trade, with the new
basis for specialization being the different technology levels or R&D intensities
of the goods being traded, rather than the initial endowments.
In order to set up a list of libraries that you have access to,
you must first login
or sign up.
Then set up a personal list of libraries from your profile page by
clicking on your user name at the top right of any screen.