International Raw Materials Market

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They analyze how endowment changes alter the cut-off point, as well as investigating issues related to content protection.[3]

I.II Natural resources

As Chapter 8 in this volume discusses, the normative question of pricing natural resources (exhaustible or renewable) has received much attention in the literature of the past decade. The middle-products approach stresses that some activities, the extraction of natural resources, must take place locally although international trade then allows other countries access to these resources. Obviously, comparative advantage changes over time for countries engaged in exporting exhaustible resource. In early work Vanek (1963) traced through the changing pattern of United States trade in natural resources, and suggested that asymmetries in resource use and availability could account for the Leontief paradox. In context of multi-level trade, the costs of recourse extraction in one country often depend on the availability of foreign capital. Kemp and Ohyama (1978) have presented simple model of North - South trade in which South makes use of Northern capital to develop its resources and exports these resources to the North where they are used to produce final commodities[4]. They put their model to use in exploring the normative issue of different degrees of bargaining strength and ability to exploit via export taxes and tariffs in the two regions. But the model also stresses the involvement of capital flows in resource extraction. Schmitz and Helmberger (1979) argue strongly for complementarity between trade in resources and trade in capital, point also stressed by Williams in his 1929 article. We turn to consider more generally, now, the interaction between trade in goods and trade in factors.[3]

Addendum 1

Siberia is Among Leaders in Raw Materials Markets[5]

Siberia's rating looks more impressive in some groups of goods than its 7-th general placing. Split the whole flow of commercial projects into 9 groups of goods, and for 6 of them Siberia joins the leading three:

Timber and Paper

I Siberia 32.6

II Moscow 19.1

III St.-Petersburg 14.2


I Siberia 20.3

II Urals 13.2

III Moscow 12.3

Chemical Products

I Moscow 17.2

II Siberia 15.7

III St.-Petersburg 11.9

Construction Materials

I Moscow 22.0

II Siberia 14.1

III Urals 5.6


I Moscow 23.6

II Siberia 12.4

III Volga 12.1


I St.-Petersburg 20.9

II Urals 19.6

III Siberia 11.7


The New Polgrave a dictionary of economic Editor: J.Eatwell, M.Mmilgate P.Newman

Chair of Raw Material Economy and World Resource Balances Prof. Dr.rer.nat. E. Machens (temporary appointment)

Positive Theory of International Trade Editor: R.W. Jones, J.P. Neary (pages 31-37)

The World Economy History & Prospect Editor: W.W Rostow (part 52 The Future of the World Economy , pages 610-618)

Siberia is Among Leaders in Raw Materials MarketsEditors: Alexei Alexeev, Andrey Kiselev

[1] In Jones (1980) a two-country Recardian model is illustrated in which one commodity requires an intermediate input and technologies differ between countries The pattern of trade can be reversed as a result of variations in the price of the traded intermediate.

[2] Both papers cite the use of the continuum concept in Dornbusch, Fischer, and Samuelson (1977).

[3] À limitation of both papers is the assumption that costs (or factor proportions) move monotonically from lower to higher stages of production. If not, trade may take place à1 many points in the productive spectrum in the absence of inhibiting transport costs.

: 5/08/2009