Japan Natural Experiment Flashcards
1
Q
characteristics of Japan natural experiment
A
- speedy transition from condition of near autarky to open international trade
- trade in goods was the mode of globalisation
- virtually no movement of labour or capital
- good quality data on trade flows, prices, production techniques etc
2
Q
critical assumptions of neoclassical trade model
A
1) competitive small scale producers
- i.e. no market power and increasing returns to scale
2) no government trade policies that distort trading patterns, such as export subsidies
3) no two-way trade
- goods either exported or imported but not both
4) small economy where production possibility frontier (PPF) under autarky and trade are quite similar
