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Comparative Advantage and Trade Liberalization in a Chamberlinian-Ricardian Model

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Author Info
Kikuchi, Toru
Shimomua, Koji

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Abstract

The present note shows the interaction between technological differences between countries and the level of trade costs as a determinant of trade patterns. It takes the work of Kikuchi et al.(2008)'s Chamberlinian-Ricardian model as its point of departure, and extends the analysis to include both a continuum of industries, as did Dornbusch et al. (1977), and iceberg transport costs. It will be shown that trade liberalization drastically changes the nature of trade patterns, particularly the emergence of intra-industry trade.

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File URL: http://mpra.ub.uni-muenchen.de/8199/
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 8199.

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Date of creation: 2008
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Handle: RePEc:pra:mprapa:8199

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

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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)
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  2. Toru Kikuchi & Koji Shimomura & Dao-Zhi Zeng, 2008. "On Chamberlinian-Ricardian Trade Patterns," Review of International Economics, Blackwell Publishing, vol. 16(2), pages 285-292, 05. [Downloadable!] (restricted)
  3. 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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This page was last updated on 2008-11-18.

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