Welfare Effects of Technological Convergence in the Food Industries

In this paper we investigate the welfare effects of technological convergence in the food industries. We extend Krugman's (1980) monopolistic competition model to allow for technological differences between two (groups of) countries. Technological convergence is reflected in a narrowing inter-country gap between fixed or marginal production cost, and the effects of convergence on output composition, factor rewards, trade pattern, and consumer welfare are derived. The theoretical predictions are examined and confirmed using an internationally comparable dataset.


Subject(s):
Issue Date:
2006
Publication Type:
Conference Paper/ Presentation
Record Identifier:
http://ageconsearch.umn.edu/record/21373
PURL Identifier:
http://purl.umn.edu/21373
Total Pages:
32
Series Statement:
Selected Paper 155503




 Record created 2017-04-01, last modified 2018-01-22

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