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Lumpy countries, urbanization, and trade

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  • Brakman, Steven
  • van Marrewijk, Charles
Abstract
Lumpiness of production factors within a country might overturn the Heckscher–Ohlin (HO) model's predictions for the factor content of trade. Trade patterns, as predicted by this model, can both be magnified or reversed by uneven concentration of production factors within a country. Cities are the most characteristic manifestation of lumpiness of production factors and as a consequence different patterns of urbanization between countries might cause trade patterns to differ from the HO model's predictions on the basis of the overall availability of production factors. Using data on cities we provide evidence that the so-called lens condition is violated, suggesting that from an urban perspective lumpiness matters.

Suggested Citation

  • Brakman, Steven & van Marrewijk, Charles, 2013. "Lumpy countries, urbanization, and trade," Journal of International Economics, Elsevier, vol. 89(1), pages 252-261.
    • Handle: RePEc:eee:inecon:v:89:y:2013:i:1:p:252-261
    DOI: 10.1016/j.jinteco.2012.05.004
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    Cited by:

    1. Steven Brakman & Tijl Hendrich & Charles van Marrewijk & Jennifer Olsen, 2023. "On the revealed comparative advantages of Dutch cities," Review of International Economics, Wiley Blackwell, vol. 31(3), pages 785-825, August.
    2. Sapkota, Jeet Bahadur & Acharya, Chakra Pani & Minowa, Mari & Neupane, Pramila, 2018. "Trade integration in Asia: Trends and determinants," MPRA Paper 106063, University Library of Munich, Germany.
    3. Rasoulinezhad, Ehsan & Taghizadeh-Hesary, Farhad & Yoshino, Naoyuki & Sarker, Tapan, 2019. "Russian Federation–East Asia Liquefied Natural Gas Trade Patterns and Regional Energy Security," ADBI Working Papers 965, Asian Development Bank Institute.
    4. Sapkota, Jeet Bahadur & Shuto, Motoko, 2016. "Is Pan-Asian Economic Integration Moving Forward? Evidence from Regional Trade Statistics," MPRA Paper 106075, University Library of Munich, Germany.
    5. Steven Brakman & Tijl Hendrich & Charles Marrewijk & Jennifer Olsen, 2022. "Is Holland a Lumpy Country? An application of the Lens-Condition to Dutch Cities," De Economist, Springer, vol. 170(3), pages 305-321, August.
    6. Steven Brakman & Charles Marrewijk & Mark Partridge, 2015. "Local Consequences Of Global Production Processes," Journal of Regional Science, Wiley Blackwell, vol. 55(1), pages 1-9, January.
    7. Markusen, James & Gervais, Antoine & Venables, Anthony, 2021. "Urban specialisation; from sectoral to functional," CEPR Discussion Papers 15677, C.E.P.R. Discussion Papers.
    8. Chen, Quanrun & Gao, Yuning & Pei, Jiansuo & de Vries, Gaaitzen & Wang, Fei, 2022. "China's domestic production networks," China Economic Review, Elsevier, vol. 72(C).
    9. Steven Brakman & Tijl Hendrich & Charles van Marrewijk & Jennifer Olsen & Charles van Marrewijk, 2020. "The Comparative Advantage of Dutch Cities," CESifo Working Paper Series 8649, CESifo.
    10. Shiwei Hu & Steven Brakman & Charles van Marrewijk, 2014. "Smart Cities are Big Cities - Comparative Advantage in Chinese Cities," CESifo Working Paper Series 5028, CESifo.
    11. Luigi Bonatti & Andrea Fracasso, 2017. "Addressing the Core-Periphery Imbalances in Europe: Resource Misallocation and Expansionary Fiscal Policies," EconPol Working Paper 6, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    12. Steven Brakman & Harry Garretsen & Charles van Marrewijk & Charles van Marrewijk, 2014. "The Crisis and Regional Resilience in Europe: On the Importance of Urbanization and Specialization," CESifo Working Paper Series 4724, CESifo.

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    More about this item

    Keywords

    Heckscher–Ohlin; Factor endowments; Agglomeration;
    All these keywords.

    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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