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Competing Communications Networks and International Trade

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Author Info
Fukushima, Marcelo
Kikuchi, Toru

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Abstract

This paper investigates the effects of competing communication networks on trade patterns in a Chamberlinian-Ricardian model of monopolistically competitive firms with a continuum of industries that require communication services in production. We conclude that intraindustry trade between different networks is determined by the relative size of networks and technological differences, and that a network will not have an incentive to expand indefi- nitely, despite network externalities.

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File URL: http://mpra.ub.uni-muenchen.de/7815/
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 7815.

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Date of creation: 2008
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Handle: RePEc:pra:mprapa:7815

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F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies

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References listed on IDEAS
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  1. Kikuchi, Toru, 2005. "On the enlargement of interconnected communications networks in the world economy," The Quarterly Review of Economics and Finance, Elsevier, vol. 45(1), pages 18-27, February. [Downloadable!] (restricted)
  2. Richard G. Harris, 1995. "Trade and Communication Costs," Canadian Journal of Economics, Canadian Economics Association, vol. 28(s1), pages 46-75, November.
  3. Dornbusch, Rudiger & Fischer, Stanley & Samuelson, Paul A, 1977. "Comparative Advantage, Trade, and Payments in a Ricardian Model with a Continuum of Goods," American Economic Review, American Economic Association, vol. 67(5), pages 823-39, December. [Downloadable!] (restricted)
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  4. Toru Kikuchi & Koji Shimomura & Dao-Zhi Zeng, 2006. "On the Emergence of Intra-industry Trade," Journal of Economics, Springer, vol. 87(1), pages 15-28, 01. [Downloadable!] (restricted)
  5. Dixit, Avinash K & Stiglitz, Joseph E, 1977. "Monopolistic Competition and Optimum Product Diversity," American Economic Review, American Economic Association, vol. 67(3), pages 297-308, June. [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 2008-9-6.

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