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A factor endowment theory of international trade under imperfect competition and increasing returns

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  • Kenji Fujiwara
  • Koji Shimomura

Abstract

. Constructing a two‐good (competitive and imperfectly‐competitive goods), two‐primary factor (capital and labor) and two‐country model of international trade where the imperfectly‐competitive sector is subject to increasing returns to scale, we establish an oligopolistic version of the Heckscher‐Ohlin theorem. JEL classification: F10, F12 Une théorie du commerce international fondée sur la dotation de facteurs de production en régime de concurrence imparfaite et de rendements croissants. A partir d’un modèle à deux biens (un bien concurrentiel et un bien imparfaitement concurrentiel) où il y a deux facteurs de production primaires (capital et travail), deux pays impliqués dans le commerce international, et où le secteur imparfaitement concurrentiel a des rendements croissants à l’échelle, on produit une version oligopolistique du théorème de Heckscher‐Ohlin.

Suggested Citation

  • Kenji Fujiwara & Koji Shimomura, 2005. "A factor endowment theory of international trade under imperfect competition and increasing returns," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 38(1), pages 273-289, February.
    • Handle: RePEc:wly:canjec:v:38:y:2005:i:1:p:273-289
    DOI: 10.1111/j.0008-4085.2005.00280.x
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    References listed on IDEAS

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    1. James R. Markusen & James R. Melvin, 1981. "Trade, Factor Prices, and the Gains from Trade with Increasing Returns to Scale," Canadian Journal of Economics, Canadian Economics Association, vol. 14(3), pages 450-469, August.
    2. Murray Kemp & Koji Shimomura, 1995. "The Apparently Innocuous Representative Agent," The Japanese Economic Review, Japanese Economic Association, vol. 46(3), pages 247-256, September.
    3. Koji Shimomura, 1997. "Factor Income Function and Oligopolistic Heckscher-Ohlin Model in Internationl Trade," Discussion Paper Series 82, Research Institute for Economics & Business Administration, Kobe University, revised Jan 1998.
    4. James R. MARKUSEN, 2021. "Trade And The Gains From Trade With Imperfect Competition," World Scientific Book Chapters, in: BROADENING TRADE THEORY Incorporating Market Realities into Traditional Models, chapter 14, pages 303-323, World Scientific Publishing Co. Pte. Ltd..
    5. Kemp, Murray C. & Van Long, Ngo, 1992. "Some properties of egalitarian economies," Journal of Public Economics, Elsevier, vol. 49(3), pages 383-387, December.
    6. R. Melvin, James & Warne, Robert D., 1973. "Monopoly and the theory of international trade," Journal of International Economics, Elsevier, vol. 3(2), pages 117-134, May.
    7. Shimomura, Koji, 1998. "Factor income function and an oligopolistic Heckscher-Ohlin model of international trade," Economics Letters, Elsevier, vol. 61(1), pages 91-100, October.
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    Cited by:

    1. Xiaobing Xing & Jiexiang Xu, 2014. "The saving rate and the upgrade of the trade commodity structure in developing countries: A dynamic H-O model under an oligopolistic market structure," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 23(8), pages 1145-1169, December.
    2. Koska, Onur A. & Stähler, Frank, 2014. "Trade and imperfect competition in general equilibrium," Journal of International Economics, Elsevier, vol. 94(1), pages 157-168.
    3. Valente, Simone, 2006. "Trade, Envy and Growth: International Status Seeking in a Two-Country World," MPRA Paper 1095, University Library of Munich, Germany.

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    More about this item

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation

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