Evaluation of role of Home Market Effects in China’s manufacturing industries

2011 ◽  
Vol 21 (2) ◽  
pp. 211-221 ◽  
Author(s):  
Xuliang Zhang ◽  
Yuemin Ning
Keyword(s):  
Manufacturing Industries ◽  
Home Market ◽  
Market Effects ◽  
Home Market Effects

Increasing Returns Versus National Product Differentiation as an Explanation for the Pattern of U.S.–Canada Trade

2001 ◽  
Vol 91 (4) ◽  
pp. 858-876 ◽  
Author(s):  
Keith Head ◽  
John Ries
Keyword(s):  
International Trade ◽  
Product Differentiation ◽  
Manufacturing Industries ◽  
Increasing Returns ◽  
National Product ◽  
Differentiated Products ◽  
Home Market ◽  
Market Effects ◽  
Canadian Manufacturing ◽  
Home Market Effects

We evaluate two alternative models of international trade in differentiated products. An increasing returns model where varieties are linked to firms predicts home market effects: increases in a country's share of demand cause disproportionate increases in its share of output. In contrast, a constant returns model with national product differentiation predicts a less than proportionate increase. We examine a panel of U.S. and Canadian manufacturing industries to test the models. Although we find support for either model, depending on whether we estimate based on within or between variation, the preponderance of the evidence supports national product differentiation. (JEL F12, F15)

scholarly journals On the Pervasiveness of Home Market Effects

Economica ◽  
2002 ◽  
Vol 69 (275) ◽  
pp. 371-390 ◽  
Author(s):  
Keith Head ◽  
Thierry Mayer ◽  
John Ries
Keyword(s):  
Home Market ◽  
Market Effects ◽  
Home Market Effects

scholarly journals The Home-Market Effect and Bilateral Trade Patterns

2004 ◽  
Vol 94 (4) ◽  
pp. 1108-1129 ◽  
Author(s):  
Gordon H Hanson ◽  
Chong Xiang
Keyword(s):  
Monopolistic Competition ◽  
Bilateral Trade ◽  
Home Bias ◽  
Differentiated Products ◽  
Home Market ◽  
Transport Costs ◽  
Trade Patterns ◽  
Market Effect ◽  
Market Effects ◽  
Home Market Effects

We develop a monopolistic-competition model of trade with many industries to examine how home-market effects vary with industry characteristics. Industries with high transport costs and more differentiated products tend to be more concentrated in large countries than industries with low transport costs and less differentiated products. We test this prediction using a difference-in-difference gravity specification that controls for import tariffs, importing-country remoteness, home bias in demand, and the tendency for large countries to export more of all goods. We find strong evidence of home-market effects whose intensity varies across industries in a manner consistent with theory.

scholarly journals Why Isn't the Whole of Spain Industrialized? New Economic Geography and Early Industrialization, 1797–1910

2003 ◽  
Vol 63 (4) ◽  
pp. 995-1022 ◽  
Author(s):  
JOAN R. ROSÉS
Keyword(s):  
Economic Geography ◽  
Comparative Advantage ◽  
Regional Differences ◽  
Industrial Development ◽  
New Economic Geography ◽  
Home Market ◽  
Market Effects ◽  
Factor Endowments ◽  
Domestic Trade ◽  
Home Market Effects

Spain provides an opportunity to study the causes of regional differences in industrial development over the nineteenth century. As transportation costs decreased and barriers to domestic trade were eliminated, Spanish manufacturing became increasingly concentrated in a few regions. This article combines Heckscher-Ohlin and economic-geography frameworks and finds that comparative-advantage and increasing-return effects were economically very significant and practically explained all differences in industrialization levels across regions. The deficits of some regions in terms of industrialization appear to have been largely attributable to their factor endowments and the absence of home-market effects for modern industries.

Sign in / Sign up

Export Citation Format

Share Document