Monopolistic Competition and International Trade: Reconsidering the Evidence

David Hummels and James Levinsohn

The Quarterly Journal of Economics, 1995, vol. 110, issue 3, 799-836

Abstract: We test some propositions about international trade flows that are derived from models of monopolistic competition developed by Elhanan Helpman and Paul Krugman. We investigate whether the volume of trade between OECD countries is consistent with the predictions of a model in which all trade is intraindustry trade in differentiated products. We then repeat the test with non-OECD countries. We also investigate whether the share of intraindustry trade is consistent with a more general theoretical model in which some, but not all, trade is intraindustry trade. Our results lead us to question the apparent empirical success of these models.

Date: 1995
References: Add references at CitEc
Citations: View citations in EconPapers (315)

Downloads: (external link)
http://hdl.handle.net/10.2307/2946700 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Monopolistic Competition and International Trade: Reconsidering the Evidence (1993)
Working Paper: Monopolistic Competition and International Trade: Reconsidering the Evidence (1993)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:qjecon:v:110:y:1995:i:3:p:799-836.

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

The Quarterly Journal of Economics is currently edited by Robert J. Barro, Lawrence F. Katz, Nathan Nunn, Andrei Shleifer and Stefanie Stantcheva

More articles in The Quarterly Journal of Economics from President and Fellows of Harvard College
Bibliographic data for series maintained by Oxford University Press ().