Abstract
This paper examines the relationship between competitive shares and relative prices for the exports of Japan, Korea and India over the past fifteen years. For Japan the results are consistent with neotechnological theories, and may be explained by a recently explicated model which applies the logic of Hicks' induced innovation mechanism to trade analysis. For the developing countries the results are found to be systematically associated with foreign trade regimes pursued as a part of overall development strategies. Thus the applicability of typical results derivable from standard static trade theories are found to be bound or restricted to special cases defined by stages of economic development, and by policy choices.
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Kellman, M. Relative prices and international competitiveness: An empirical investigation. Empirical Economics 8, 125–138 (1983). https://doi.org/10.1007/BF01969339
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DOI: https://doi.org/10.1007/BF01969339