Trade volume and country size in the Heckscher-Ohlin model
AbstractThis paper develops a model of international trade based on differences in factor endowments across countries. We use this model to show that in such an environment, holding relative endowments and the size of the world economy constant, the volume of trade increases as countries become more similar to each other in terms of their relative sizes.
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Bibliographic InfoArticle provided by AccessEcon in its journal Economics Bulletin.
Volume (Year): 6 (2008)
Issue (Month): 1 ()
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Find related papers by JEL classification:
- F1 - International Economics - - Trade
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- Hummels, David & Levinsohn, James, 1995.
"Monopolistic Competition and International Trade: Reconsidering the Evidence,"
The Quarterly Journal of Economics,
MIT Press, vol. 110(3), pages 799-836, August.
- David Hummels & James Levinsohn, 1993. "Monopolistic Competition and International Trade: Reconsidering the Evidence," NBER Working Papers 4389, National Bureau of Economic Research, Inc.
- Hummels, D. & Levinsohn, J., 1993. "Monopolistic Competition and International Trade: Reconsidering the Evidence," Working Papers 339, Research Seminar in International Economics, University of Michigan.
- Debaere, Peter, 2005. "Monopolistic competition and trade, revisited: testing the model without testing for gravity," Journal of International Economics, Elsevier, vol. 66(1), pages 249-266, May.
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