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Intra-industry trade in identical commodities

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  • Brander, James A.

Abstract

The usual approach to intra-industry trade is to assume such trade arises because slightly different commodities are produced and traded to satisfy consumers' tastes for variety. This paper shows there are reasons to expect two-way trade even in identical products, due to strategic interaction among firms.
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Suggested Citation

  • Brander, James A., 1981. "Intra-industry trade in identical commodities," Journal of International Economics, Elsevier, vol. 11(1), pages 1-14, February.
  • Handle: RePEc:eee:inecon:v:11:y:1981:i:1:p:1-14
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