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Reconsideration of trade patterns in a Chamberlinian-Ricardian model

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  • Nobuhito Suga

    (Nagoya University)

Abstract

This paper reexamines the patterns of trade in a Chamberlinian-Ricardian model by introducing a simple dynamic process of labor reallocation. Our analysis shows the following results. First, the patterns of inter-industry trade are determined by technical differences among countries. Second, whether intra-industry trade emerges depends not only on the cross-country technical heterogeneity but also on the size of a country and the expenditure share for differentiated products. Our main finding is that intra-industry trade can emerge in the trading equilibrium even if there is technical heterogeneity among countries.

Suggested Citation

  • Nobuhito Suga, 2005. "Reconsideration of trade patterns in a Chamberlinian-Ricardian model," Economics Bulletin, AccessEcon, vol. 6(8), pages 1-10.
    • Handle: RePEc:ebl:ecbull:eb-05f10006
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    References listed on IDEAS

    as
    1. Venables, Anthony J, 1987. "Trade and Trade Policy with Differentiated Products: A Chamberlinian-Ricardian Model," Economic Journal, Royal Economic Society, vol. 97(387), pages 700-717, September.
    2. Toru Kikuchi & Dao-Zhi Zeng, 2004. "On Chamberlinian-Ricardian trade patterns with many industries," Economics Bulletin, AccessEcon, vol. 6(22), pages 1-9.
    3. Krugman, Paul R., 1979. "Increasing returns, monopolistic competition, and international trade," Journal of International Economics, Elsevier, vol. 9(4), pages 469-479, November.
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    Cited by:

    1. Suga, Nobuhito, 2007. "A monopolistic-competition model of international trade with external economies of scale," The North American Journal of Economics and Finance, Elsevier, vol. 18(1), pages 77-91, February.

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    JEL classification:

    • F1 - International Economics - - Trade
    • F1 - International Economics - - Trade

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