Chapter 3 Comparative Advantage and Trade Liberalization in a Chamberlinian–Ricardian Model

Toru Kikuchi and Koji Shimomura

A chapter in Globalization and Emerging Issues in Trade Theory and Policy, 2008, pp 29-35 from Emerald Group Publishing Limited

Abstract: Purpose – The present note shows the interaction between technological differences between countries and the level of trade costs as a determinant of trade patterns. Methodology/approach – It takes the work of Kikuchi et al.'s (2008) Chamberlinian–Ricardian model as its point of departure, and extends the analysis to include both a continuum of industries, as did Dornbusch et al. (1977), and iceberg transport costs. Findings – It will be shown that trade liberalization drastically changes the nature of trade patterns, particularly the emergence of intra-industry trade. Originality/value – This present model extends the Chamberlinian–Ricardian model to include positive trade costs.

Keywords: Trade liberalization; comparative advantage; Chamberlinian–Ricardian model; Research paper (search for similar items in EconPapers)
Date: 2008
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Persistent link: https://EconPapers.repec.org/RePEc:eme:fegzzz:s1574-8715(08)05003-3

DOI: 10.1016/S1574-8715(08)05003-3

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