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A Ricardian model of international trade with oligopolistic competition

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  • Haiwen Zhou

Abstract

This paper studies a Ricardian model of international trade with a continuum of products in a general equilibrium model in which firms engage in oligopolistic competition. It provides a bridge between trade models based on perfect competition and models based on imperfect competition. Compared with a model based on perfect competition, the incorporation of fixed cost leads to the result that an increase of domestic labor may increase the relative wage of the domestic country.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/09638199.2010.506337
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Bibliographic Info

Article provided by Taylor and Francis Journals in its journal The Journal of International Trade & Economic Development.

Volume (Year): 19 (2010)
Issue (Month): 4 ()
Pages: 499-515

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Handle: RePEc:taf:jitecd:v:19:y:2010:i:4:p:499-515

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Related research

Keywords: comparative advantage; Ricardian model; oligopolistic competition; increasing returns to scale; trade policy;

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