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Existence of Equilibrium in Models of International Trade with Perfect or Imperfect Competition

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  • Arnold, Lutz G.

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Abstract

Dixit and Norman ("Theory of International Trade", Cambridge: Cambridge University Press, 1980) showed that, under certain conditions, the world economy replicates the equilibrium of the hypothetical integrated economy without national borders in the traditional trade model with perfect competition. Helpman and Krugman ("Market Structure and Foreign Trade. Increasing Returns, Imperfect Competition, and the International Economy", Cambridge, MA: MIT Press, 1985) extended their analysis to settings with imperfectly competitive sectors. This paper derives necessary and sufficient conditions for the existence of free trade equilibria with replication in models with perfect or imperfect competition. Dixit and Norman ("Theory of International Trade", Cambridge: Cambridge University Press, 1980) zeigten für Modelle internationalen Handels mit vollkommenem Wettbewerb, dass unter gewissen Bedingungen die Weltwirtschaft mit nationalen Grenzen das Gleichgewicht der aus allen Ländern bestehenden hypothetischen "integrierten Ökonomie" repliziert. Helpman and Krugman ("Market Structure and Foreign Trade. Increasing Returns, Imperfect Competition, and the International Economy", Cambridge, MA: MIT Press, 1985) erweiterten diesen Ansatz in Richtung von Modellen mit unvollkommenem Wettbewerb. Das vorliegende Paper leitet für Modelle sowohl mit vollkommenem als auch mit unvollkommenem Wettbewerb notwendige und hinreichende Bedingungen für die Existenz eines Freihandelsgleichgewichts, das das hypothetische integrierte Gleichgewicht repliziert, her.

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Bibliographic Info

Paper provided by University of Regensburg, Department of Economics in its series University of Regensburg Working Papers in Business, Economics and Management Information Systems with number 424.

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Date of creation: 2007
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Handle: RePEc:bay:rdwiwi:807

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Keywords: Allgemeines Gleichgewichtsmodell ; Außenhandel ; Unvollständige Konkurrenz;

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