Economic Integration in a Chamberlinian-Ricardian World
AbstractBased 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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Bibliographic InfoPaper provided by Economics and Econometrics Research Institute (EERI), Brussels in its series EERI Research Paper Series with number EERI_RP_2008_07.
Length: 13 pages
Date of creation: 20 Oct 2008
Date of revision:
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; Fragmentation
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