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Grossman-Hart (1986) Goes Global: Incomplete Contracts, Property Rights, and the International Organization of Production

  • Antràs, Pol

I survey the influence of Grossman and Hart's (1986) seminal paper in the field of International Trade. I discuss the implementation of the theory in open-economy environments and its implications for the international organization of production and the structure of international trade flows. I also review empirical work suggestive of the empirical relevance of the property-rights theory. Along the way, I develop novel theoretical results and also outline some of the key limitations of existing contributions.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 8598.

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Date of creation: Oct 2011
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Handle: RePEc:cpr:ceprdp:8598
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