Intra-firm Specialization, Income Distribution, and International Trade

Haiwen Zhou

Journal of Economic Integration, 2006, vol. 21, 577-592

Abstract:

The impact of international trade on a firm’s degree of specialization and income distribution is studied in a general equilibrium framework in which firms engage in oligopolistic competition. International trade increases a firm’s degree of specialization, but the number of goods a country produces may not change. Trade may lower the welfare of the scarce factor of production. Sufficient conditions for a country’s welfare to increase with trade are provided.

Keywords: Degree of specialization; Income distribution; International trade; Oligopolistic competition; Increasing returns to scale (search for similar items in EconPapers)
JEL-codes: F12 (search for similar items in EconPapers)
Date: 2006
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:ris:integr:0370

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