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Protection, international factor mobility and monopolistic competition

Author

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  • Sajid Anwar

    (School of Business, Northern Territory University, Australia)

Abstract

This paper utilises a model of a small open economy that produces two traded goods by means of primary factors and a large number of varieties of a non-traded intermediate good. Unlike the traded goods, the production of each variety of the non-traded good is subject to internal economies of scale and monopolistic competition prevails in the intermediate good sector. The presence of internal economies in the intermediate good sector gives rise to external economies in the production of the final good sector. Within the context of the present study, interindustry and intra-industry trade takes place side by side. The model is used to examine the impact of tariffs and changes in factor endowments on allocation of resources and welfare.

Suggested Citation

  • Sajid Anwar, 2000. "Protection, international factor mobility and monopolistic competition," Finnish Economic Papers, Finnish Economic Association, vol. 13(2), pages 116-128, Autumn.
    • Handle: RePEc:fep:journl:v:13:y:2000:i:2:p:116-128
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    References listed on IDEAS

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    Cited by:

    1. Sajid Anwar, 2001. "Commercial policy and international factor mobility in the presence of monopolistic competition," Journal of Economics, Springer, vol. 74(3), pages 259-281, October.

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    More about this item

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F20 - International Economics - - International Factor Movements and International Business - - - General
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements

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