Trade and trade policy with differentiated products: A Chamberlinian�-�Ricardian model. A comment
AbstractThis paper shows that the results of Venables (1987) depend critically on the assumption that there are no fixed costs of trade. The introduction of fixed costs of exporting, while making the model more consistent with the empirical evidence, leads to the opposite conclusion that technological progress in one country cannot harm the welfare of its trading partner. However, the results can be obtained in a richer setting with heterogeneous firms.
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Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal The Journal of International Trade & Economic Development.
Volume (Year): 16 (2007)
Issue (Month): 3 ()
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Other versions of this item:
- Svetlana Demidova & Kala Krishna, 2007. "Trade and Trade Policy with Differentiated Products: A Chamberlinian-Ricardian Model: A Comment," NBER Working Papers 12949, National Bureau of Economic Research, Inc.
- F1 - International Economics - - Trade
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2-05-1, Pennsylvania State University, Department of Economics.
- Svetlana Demidova, 2008. "Productivity Improvements And Falling Trade Costs: Boon Or Bane?," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 49(4), pages 1437-1462, November.
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