Horizontal Intra-Industry Trade and the Growth of International Trade

Nicolas Schmitt and Zhihao Yu ()

Chapter 3 in Frontiers of Research in Intra-Industry Trade, 2002, pp 33-48 from Palgrave Macmillan

Abstract: Abstract The main question investigated in this chapter is whether a model of intra-industry trade with horizontal differentiation is able to explain the significant gap between the growth rates of trade and of output. We argue that it does, provided that the standard model of intra-industry trade (that is, the Dixit—Stiglitz—Krugman model) includes non-traded products.

Keywords: World Trade; Fixed Cost; Trade Liberalization; Scale Economy; Export Volume (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_3

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DOI: 10.1057/9780230285989_3

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