TY  - JOUR
AU  - Blomstrom,Magnus
AU  - Lipsey,Robert E.
AU  - Ohlsson,Lennart
TI  - What Do Rich Countries Trade with Each Other? R&D and the Composition of U.S. and Swedish Trade
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 3140
PY  - 1991
Y2  - April 1991
UR  - http://www.nber.org/papers/w3140
L1  - http://www.nber.org/papers/w3140.pdf
N1  - Author contact info:
Magnus Blomstrom
European Institute of Japanese Studies
Stockholm School of Economics
Post Office Box 6501, Sveavagen 65
S-113 83 Stockholm
 SWEDEN
Tel: 46-8-7369265
Fax: 46-8-313017
E-Mail: magnus.blomstrom@gmail.com

Robert E. Lipsey
NBER
365 Fifth Avenue, Suite 5318
New York, NY 10016-4309
Tel: 212/817-7961
Fax: 212/817-1597
E-Mail: N/A user is deceased
AB  - A long tradition in international economics explains comparative advantage by differences between countries in their stage of development, or their endowments of land, labor, and capital, and suggests that universal development will reduce the importance of trade. Sweden and the United States possess similar factor endowments and have converged in overall productivity, but their bilateral trade has grown. The example of these two countries suggests that mutual technological progress may promote trade, with the new basis for specialization being the different technology levels or R&D intensities of the goods being traded, rather than the initial endowments.
ER  -