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Intra-firm Specialization, Income Distribution, and International Trade

Author

Listed:
  • Zhou, Haiwen

    (Old Dominion University)

Abstract

The impact of international trade on a firm’s degree of specialization and income distribution is studied in a general equilibrium framework in which firms engage in oligopolistic competition. International trade increases a firm’s degree of specialization, but the number of goods a country produces may not change. Trade may lower the welfare of the scarce factor of production. Sufficient conditions for a country’s welfare to increase with trade are provided.

Suggested Citation

  • Zhou, Haiwen, 2006. "Intra-firm Specialization, Income Distribution, and International Trade," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 21, pages 577-592.
    • Handle: RePEc:ris:integr:0370
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    Citations

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    Cited by:

    1. Haiwen Zhou, 2007. "Increasing Returns, the Choice of Technology, and the Gains from Trade," Southern Economic Journal, John Wiley & Sons, vol. 74(2), pages 581-600, October.
    2. Haiwen Zhou, 2007. "Oligopolistic Competition And Economic Geography," Journal of Regional Science, Wiley Blackwell, vol. 47(5), pages 915-933, December.
    3. Haiwen Zhou, 2007. "Factor Endowment, the Choice of Technology, and the Volume of Trade," International Economic Journal, Taylor & Francis Journals, vol. 21(4), pages 593-611.

    More about this item

    Keywords

    Degree of specialization; Income distribution; International trade; Oligopolistic competition; Increasing returns to scale;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation

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