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Estimating the Knowledge-Capital Model of the Multinational Enterprise

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  • David L. Carr
  • James R. Markusen
  • Keith E. Maskus

Abstract

The industrial-organization (IO) approach to international trade (“new trade theory”) has incorporated features of increasing returns to scale, imperfect competition, and product differentiation into traditional general-equilibrium trade models. These new models offer rich predictions about the direction and volume of trade between two countries as functions of industry characteristics (factor intensities, scale economies, product differentiation) interacting with country characteristics (relative size differences, relative endowment differences, and trade costs)…
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Suggested Citation

  • David L. Carr & James R. Markusen & Keith E. Maskus, 2001. "Estimating the Knowledge-Capital Model of the Multinational Enterprise," American Economic Review, American Economic Association, vol. 91(3), pages 693-708, June.
  • Handle: RePEc:aea:aecrev:v:91:y:2001:i:3:p:693-708
    Note: DOI: 10.1257/aer.91.3.693
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    References listed on IDEAS

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    5. David L. Carr & James R. Markusen & Keith E. Maskus, 2021. "Estimating The Knowledge-Capital Model of the Multinational Enterprise," World Scientific Book Chapters, in: BROADENING TRADE THEORY Incorporating Market Realities into Traditional Models, chapter 5, pages 95-110, World Scientific Publishing Co. Pte. Ltd..
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    More about this item

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation

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    1. Estimating the Knowledge-Capital Model of the Multinational Enterprise (AER 2001) in ReplicationWiki

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