A Note on the Distribution of Trade Gains in a Model of Monopolistic Competition

Toru Kikuchi

Open Economies Review, 2001, vol. 12, issue 4, 415-421

Abstract: This article examines the relationship between relative country size and the welfare consequences of opening trade in a model of monopolistic competition with trade costs. The findings indicate that if two countries produce differentiated products in trading equilibrium, the rate of welfare changes brought about by opening trade will be equalized across the countries. Copyright Kluwer Academic Publishers 2001

Keywords: monopolistic competition; distribution of trade gains (search for similar items in EconPapers)
Date: 2001
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Citations: View citations in EconPapers (3)

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DOI: 10.1023/A:1017987017873

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