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Endogenous Market Structures and International Trade and Finance

In: Endogenous Market Structures and the Macroeconomy

Author

Listed:
  • Federico Etro

    (Università Milano-Bicocca)

Abstract

The gains from trade are traditionally associated with international specialization of production activities following the comparative advantage of nations within the neoclassical tradition started by Heckscher (1929) and Ohlin (1933), and with the availability of new varieties of goods produced and exchanged in intra-industry trade within the new trade approach, pioneered by Krugman (1980) and summarized by Helpman and Krugman (1985). The latter approach has introduced monopolistic behavior of firms à la Dixit and Stiglitz (1977) in the trade literature emphasizing the endogenous increase in the number of products that can be bought (at the same price as before) after a country opens up to trade.

Suggested Citation

  • Federico Etro, 2009. "Endogenous Market Structures and International Trade and Finance," Springer Books, in: Endogenous Market Structures and the Macroeconomy, chapter 4, pages 145-195, Springer.
  • Handle: RePEc:spr:sprchp:978-3-540-87427-0_4
    DOI: 10.1007/978-3-540-87427-0_4
    as

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