Quotation Smet, Koen. 2008. A clockwork economy: A three-dimensional trade model imbedded in the general equilibrium theory.. European Trade Study Group Conference, Warschau, Polen, 11.09.-13.09.




The analysis of South African trade data from 1993 until 2006 by simultaneously using a Grubel-Lloyd index, a measurement of marginal intra-industry trade and a revealed comparative advantage (RCA) indicator shows that South African imports and exports increased steadily and that the structural change of trade was characterised by specialisation. Whereas South Africa exports similar products to both China and the EU, it imports mainly high-tech goods from the EU and low-tech, labour-intensive goods from China. South African exports originate from a cluster of industries which are linked to the South African mining industry. These facts motivate the application of a multi-dimensional Heckscher-Ohlin-Samuelson trade model to explain the observed South African trade pattern. More specific a 3x3x3 trade model imbedded in the general equilibrium theory is constructed to predict trade flows between three stylised countries representing South Africa, the EU and China. Due to the dimensions of the model the concept of the endowment triangle is included in the model which makes a theoretical analysis simpler and visualises the results.


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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Paper presented at an academic conference or symposium
Language English
Title A clockwork economy: A three-dimensional trade model imbedded in the general equilibrium theory.
Event European Trade Study Group Conference
Year 2008
Date 11.09.-13.09
Country Poland
Location Warschau
URL http://www.etsg.org/ETSG2008/ETSG2008Programme.htm


Smet, Koen (Former researcher)
Department of Economics (Kubin) (Details)
Research areas (Ă–STAT Classification 'Statistik Austria')
5300 Economics (Details)
5344 Foreign trade (Details)
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