On Chamberlinian-Ricardian Trade Patterns

Toru Kikuchi (), Koji Shimomura and Dao-Zhi Zeng

Review of International Economics, 2008, vol. 16, issue 2, pages 285-292

Abstract: This study provides a simple, many-industry model of trade which emphasizes the interaction between cross-country technical heterogeneity (i.e., a Ricardian aspect) and monopolistic competition among producers of differentiated products (i.e., a Chamberlinian aspect) as determinants of trade patterns. It is shown that the emergence of intra-industry trade is crucially dependent on the shape of the technology index schedule, which is obtained as a step-function. Copyright © 2007 The Authors.

Date: 2008
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