The long and short-run spatial impacts of trade
We explore how the spatial impacts of trade evolve over time using a dynamic spatial model that incorporates capital accumulation and skill acquisition. We show that in the short run, the spatial impacts of trade mainly depend on the initial conditions, especially the endowments of physical and huma...
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sg-smu-ink.soe_research-37332024-07-04T00:40:24Z The long and short-run spatial impacts of trade MA, Lin SONG, Yunlong TANG, Yang We explore how the spatial impacts of trade evolve over time using a dynamic spatial model that incorporates capital accumulation and skill acquisition. We show that in the short run, the spatial impacts of trade mainly depend on the initial conditions, especially the endowments of physical and human capital across locations. However, in the long run, trade shocks shape the distribution of production factors across space through factor accumulation and migration, resulting in significantly different spatial impacts. In the context of China’s WTO accession, we find that international trade is seven times more effective in driving the population towards coastal areas in the long run than in the short run. The skill composition of trade-induced migration exhibits a reversal over time. Furthermore, we demonstrate that policies designed to alleviate the localized impacts of globalization would be misdirected and underfunded if policymakers overlook the intertemporal variations in the spatial impacts of trade. 2024-02-01T08:00:00Z text application/pdf https://ink.library.smu.edu.sg/soe_research/2734 https://ink.library.smu.edu.sg/context/soe_research/article/3733/viewcontent/The_Long_and_Short_Run_Spatial_Impacts_of_Trade__7__.pdf http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection School Of Economics eng Institutional Knowledge at Singapore Management University International trade skill premium economic geography capital accumulation International Economics International Trade Law |
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International trade skill premium economic geography capital accumulation International Economics International Trade Law MA, Lin SONG, Yunlong TANG, Yang The long and short-run spatial impacts of trade |
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We explore how the spatial impacts of trade evolve over time using a dynamic spatial model that incorporates capital accumulation and skill acquisition. We show that in the short run, the spatial impacts of trade mainly depend on the initial conditions, especially the endowments of physical and human capital across locations. However, in the long run, trade shocks shape the distribution of production factors across space through factor accumulation and migration, resulting in significantly different spatial impacts. In the context of China’s WTO accession, we find that international trade is seven times more effective in driving the population towards coastal areas in the long run than in the short run. The skill composition of trade-induced migration exhibits a reversal over time. Furthermore, we demonstrate that policies designed to alleviate the localized impacts of globalization would be misdirected and underfunded if policymakers overlook the intertemporal variations in the spatial impacts of trade. |
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MA, Lin SONG, Yunlong TANG, Yang |
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MA, Lin SONG, Yunlong TANG, Yang |
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MA, Lin |
title |
The long and short-run spatial impacts of trade |
title_short |
The long and short-run spatial impacts of trade |
title_full |
The long and short-run spatial impacts of trade |
title_fullStr |
The long and short-run spatial impacts of trade |
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The long and short-run spatial impacts of trade |
title_sort |
long and short-run spatial impacts of trade |
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Institutional Knowledge at Singapore Management University |
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2024 |
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https://ink.library.smu.edu.sg/soe_research/2734 https://ink.library.smu.edu.sg/context/soe_research/article/3733/viewcontent/The_Long_and_Short_Run_Spatial_Impacts_of_Trade__7__.pdf |
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