Intermediation and Economic Integration
AbstractThe theory of international trade has paid scant attention to market institutions. Neither neoclassical theory nor new trade models typically specify the process by which supply and demand meet. Yet in the real world, intermediaries play a central role in materializing the gains from exchange outlined by standard trade theories. In Antràs and Costinot (2010), we have developed a stylized but explicit model of intermediation in trade. In this short paper, we present a variant of this model that illustrates the potential role of intermediaries in facilitating the realization of the gains from trade.
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Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 7697.
Date of creation: Feb 2010
Date of revision:
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Other versions of this item:
- Pol Antràs & Arnaud Costinot, 2010. "Intermediation and Economic Integration," NBER Working Papers 15751, National Bureau of Economic Research, Inc.
- Costinot, Arnaud & Antras, Pol, 2010. "Intermediation and Economic Integration," Scholarly Articles 4784026, Harvard University Department of Economics.
- D2 - Microeconomics - - Production and Organizations
- D3 - Microeconomics - - Distribution
- F10 - International Economics - - Trade - - - General
- F15 - International Economics - - Trade - - - Economic Integration
- O1 - Economic Development, Technological Change, and Growth - - Economic Development
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