International Trade with Lumpy Countries
This paper explores the implications for the pattern of international trade of differences among regions within countries--what the authors call "lumpiness." If factors of production are sufficiently unevenly distributed across regions, then the pattern of trade of the country as a whole may depart from what it would have been had factors been evenly distributed. Thus, lumpiness in the geographical distribution of factors can be a determinant of trade. The authors show in particular that if other determinants of trade are absent, then a country will tend to export the good that intensively uses its lumpier (i.e., more unevenly distributed) factor. Copyright 1992 by University of Chicago Press.
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