Like Schmitz (2001), we view our results as less pertinent for rich economies like the United States, where public sector involvement in intermediate good
production is relatively small; rather, we view the results of our model as being applicable mostly to least developed countries (LDCs), such as Egypt, where governments typically play a large role in intermediate goods
Z]) and the public input (P) to create one variety of the intermediate good
In comparison with a situation of autarchy, this type of trade causes an increase in the number of intermediate good
It has been shown that in cases where one country has a better technology for producing an intermediate good
than another, commercial policy may be effective in increasing domestic welfare [Spencer and Jones, "Trade and Protection in Vertically Related Markets," Journal of International Economics, 1992].
In the model economy, there are four types of activities - final good production, intermediate good
production, physical and human capital accumulation and innovative R&D.
When K is a pure intermediate good
, domestic perfect competition requires that the price of K equals the value of its marginal product
To the export-oriented companies, the increased percentage of intermediate goods
will save money and to domestic firms it will be an opportunity to increase their share of the overall export, say representatives of the association.
8%, both intermediate goods
and durable consumer goods by 1.
Osama El-Menilawy, assistant general manager of the financial sector at a private bank operating in Egypt, said the CBE urged the banks that received US dollars to cover the demands of importers whose intermediate goods
are stuck in customs.
4%, while production of intermediate goods
fell by 0.
But trade for both countries is highly dependent on just one industry, such as resources or garments and footwear, and the development of a supply chain which is able to mutually procure intermediate goods
, as seen in other ASEAN countries, has not been fully developed yet.
The country's imports grew in February as expectations of rising business activities prompted firms to purchase more raw materials and intermediate goods