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A Note on the Distribution of Trade Gains in a Model of Monopolistic Competition

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  • Toru Kikuchi

Abstract

This article examines the relationship between relative country size and the welfare consequences of opening trade in a model of monopolistic competition with trade costs. The findings indicate that if two countries produce differentiated products in trading equilibrium, the rate of welfare changes brought about by opening trade will be equalized across the countries. Copyright Kluwer Academic Publishers 2001

Suggested Citation

  • Toru Kikuchi, 2001. "A Note on the Distribution of Trade Gains in a Model of Monopolistic Competition," Open Economies Review, Springer, vol. 12(4), pages 415-421, October.
    • Handle: RePEc:kap:openec:v:12:y:2001:i:4:p:415-421
    DOI: 10.1023/A:1017987017873
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    Cited by:

    1. Deng-Shing Huang & Yo-Yi Huang & Cheng-Te Lee, 2006. "Technology Advantage and Trade: Home Market Effects Revisited," IEAS Working Paper : academic research 06-A011, Institute of Economics, Academia Sinica, Taipei, Taiwan.
    2. Iader Giraldo & Fernando Jaramillo, 2018. "Productivity, Demand, and the Home Market Effect," Open Economies Review, Springer, vol. 29(3), pages 517-545, July.
    3. Yo-Yi Huang & Cheng-Te Lee & Deng-Shing Huang, 2014. "Home Market Effects In The Chamberlinian–Ricardian World," Bulletin of Economic Research, Wiley Blackwell, vol. 66(S1), pages 36-54, December.

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