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Economic Integration in a Chamberlinian-Ricardian World

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Author Info
Toru Kikuchi

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Abstract

Based on a many-industry Chamberlinian-Ricardian trade model with iceberg trade costs, this note examines the impact of two modes of economic integration: a reduction in trade costs, and technical standardization due to information spillover. It is shown that these two modes of economic integration have opposing effects on specialization patterns: while trade liberalization narrows the range of industries with intra-industry trade, technical standardization widens the same range.

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Publisher Info
Paper provided by Economics and Econometrics Research Institute (EERI) in its series EERI Research Paper Series with number EERI_RP_2008_07.

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Length: 13 pages
Date of creation: 20 Oct 2008
Date of revision:
Handle: RePEc:eei:rpaper:eeri_rp_2008_07

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Related research
Keywords: Monopolistic competition; Technical heterogeneity; Trade costs; Economic integration.;

Find related papers by JEL classification:
D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies

This paper has been announced in the following NEP Reports:

References listed on IDEAS
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  1. J. Peter Neary, 2003. "Competitive versus Comparative Advantage," The World Economy, Blackwell Publishing, vol. 26(4), pages 457-470, 04. [Downloadable!] (restricted)
    Other versions:
  2. Rivera-Batiz, Luis A & Romer, Paul M, 1991. "Economic Integration and Endogenous Growth," The Quarterly Journal of Economics, MIT Press, vol. 106(2), pages 531-55, May. [Downloadable!] (restricted)
    Other versions:
  3. Nicholas C. S. Sim, 2004. "International production sharing and economic development: moving up the value-chain for a small-open economy," Applied Economics Letters, Taylor and Francis Journals, vol. 11(14), pages 885-889, November. [Downloadable!] (restricted)
  4. Van Long, Ngo & Riezman, Raymond & Soubeyran, Antoine, 2005. "Fragmentation and services," The North American Journal of Economics and Finance, Elsevier, vol. 16(1), pages 137-152, March. [Downloadable!] (restricted)
  5. Rikard Forslid & Ian Wooton, 2003. "Comparative Advantage and the Location of Production," Review of International Economics, Blackwell Publishing, vol. 11(4), pages 588-603, 09. [Downloadable!] (restricted)
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  6. Krugman, Paul R., 1979. "Increasing returns, monopolistic competition, and international trade," Journal of International Economics, Elsevier, vol. 9(4), pages 469-479, November. [Downloadable!] (restricted)
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This page was last updated on 2009-12-2.

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