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Horizontal Intra-Industry Trade and the Growth of International Trade

In: Frontiers of Research in Intra-Industry Trade

Author

Listed:
  • Nicolas Schmitt
  • Zhihao Yu

Abstract

The main question investigated in this chapter is whether a model of intra-industry trade with horizontal differentiation is able to explain the significant gap between the growth rates of trade and of output. We argue that it does, provided that the standard model of intra-industry trade (that is, the Dixit—Stiglitz—Krugman model) includes non-traded products.

Suggested Citation

  • Nicolas Schmitt & Zhihao Yu, 2002. "Horizontal Intra-Industry Trade and the Growth of International Trade," Palgrave Macmillan Books, in: P. J. Lloyd & Hyun-Hoon Lee (ed.), Frontiers of Research in Intra-Industry Trade, chapter 3, pages 33-48, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-28598-9_3
    DOI: 10.1057/9780230285989_3
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    Cited by:

    1. Zhihao Yu, 2003. "IT, Production Specialization, and Division of Labor: A Smith-Ricardo Model of International Trade," Carleton Economic Papers 03-06, Carleton University, Department of Economics.
    2. Zhihao Yu, 2002. "Entrepreneurship and intra-industry trade," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 138(2), pages 277-290, June.

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