Intra-Industry Trade in Homogeneous Products

Daniel M. Bernhofen

Chapter 4 in Frontiers of Research in Intra-Industry Trade, 2002, pp 49-66 from Palgrave Macmillan

Abstract: Abstract There seems to be a general consensus among trade economists that the phenomenon of intra-industry trade is linked directly to imperfect cornpetition and economies of scale. Among the different theoretical explanations of intra-industry trade, the various models based on product differentiation in the presence of scale economies have obtained the highest level of popularity. This is possibly the case because the notion that intra-industry trade is linked to product differentiation had been postulated a decade before models of the new trade theory established the link formally in the late 1970s.

Keywords: Factor Endowment; Homogeneous Product; Brander Model; Collusive Agreement; Monopolistic Competition (search for similar items in EconPapers)
Date: 2002
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-28598-9_4

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DOI: 10.1057/9780230285989_4

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