This study provides a simple, many-industry model of trade which emphasizes the interaction between cross-country technical heterogeneity (i.e., a Ricardian aspect) and monopolistic competition among producers of differentiated products (i.e., a Chamberlinian aspect) as determinants of trade patterns. It is shown that the emergence of intra-industry trade is crucially dependent on the shape of the technology index schedule, which is obtained as a step-function.
|Number of pages||8|
|Journal||Review of International Economics|
|Publication status||Published - 2008 May 1|
ASJC Scopus subject areas
- Geography, Planning and Development