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International Trade in Differentiated Middle Products

In: Structural Adjustment in Developed Open Economies

Author

Listed:
  • Elhanan Helpman

    (Tel Aviv University)

Abstract

The theory of international trade has been extended in recent years to deal with intra-industry trade.2 These extensions aim to explain certain facts about existing trade patterns, which cannot be explained by the traditional comparative costs theory (Ricardo) and the traditional relative factor abundance theory (Heckscher-Ohlin). They are based on the existence of product differentiation, economies of scale and monopolistic competition. They provide an explanation of trade which is complementary to the traditional views and it has, indeed, been shown by several authors that both explanations can coexist in extended models of international trade (see Helpman, 1984, for a review of this literature).

Suggested Citation

  • Elhanan Helpman, 1985. "International Trade in Differentiated Middle Products," International Economic Association Series, in: Karl Jungenfelt & Douglas Hague (ed.), Structural Adjustment in Developed Open Economies, chapter 1, pages 3-34, Palgrave Macmillan.
    • Handle: RePEc:pal:intecp:978-1-349-17919-0_1
    DOI: 10.1007/978-1-349-17919-0_1
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    Cited by:

    1. Carballo, Jeronimo & Ottaviano, Gianmarco I.P. & Volpe Martincus, Christian, 2018. "The buyer margins of firms' exports," Journal of International Economics, Elsevier, vol. 112(C), pages 33-49.
    2. Huang, Kevin X.D. & Liu, Zheng, 2007. "Business cycles with staggered prices and international trade in intermediate inputs," Journal of Monetary Economics, Elsevier, vol. 54(4), pages 1271-1289, May.
    3. Gniniguè, Moukpè & Wonyra, Kwami Ossadzifo & Tchagnao, Abdou-Fataou & Bayale, Nimonka, 2023. "Participation of developing countries in global value chains: What role for information and communication technologies?," Telecommunications Policy, Elsevier, vol. 47(3).
    4. Joseph F. Francois & Douglas Nelson, 2002. "A Geometry Of Specialisation," Economic Journal, Royal Economic Society, vol. 112(481), pages 649-678, July.
    5. Paul R. Krugman, 1985. "Increasing Returns and the Theory of International Trade," NBER Working Papers 1752, National Bureau of Economic Research, Inc.
    6. Flam, Harry & Helpman, Elhanan, 1986. "Trade Dynamics," Foerder Institute for Economic Research Working Papers 275413, Tel-Aviv University > Foerder Institute for Economic Research.

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