International Trade in Manufactured Products

A large data set on trade in manufactured products is used to evaluate the performance of a model that combines both the Ricardian and Heckscher-Ohlin effects and incorporates monopolistic competition. The paper estimates a relation implied by the model to explain relative sectoral exports of major countries to a number of important markets, using 1970-90 data for nine manufacturing sectors. The relation fits the data well and variables suggested by both traditional and new trade models play an important role in explaining relative exports.Production;Economic models;intermediate goods, international trade, trade barriers, intermediate inputs, trade models, fixed capital formation, trade flows, factor endowments, exporting countries, perfect competition, unit of capital, foreign trade, net exports, trade data, political economy, total factor productivity, real gdp, gross fixed capital formation, capital formation, export ratio, trade costs, value of exports, product differentiation, imperfect competition, trading partners, industry trade, trade liberalization, regional trade liberalization, world exports, domestic production, elasticity of substitution, bilateral trade, exchange rate fluctuations, investment goods, regional trade, metal products, factor shares, trade theories, domestic price, export performance