Industrial location: a synthesis of Chamberlin and Ricardo

Pierre Picard and Dao-Zhi Zeng ()

No 2006055, LIDAM Discussion Papers CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE)

Abstract: This paper investigates the joint impact of Chamberlinian monopolistic competition and Ricardian comparative advantages on the structure of trade and industries. We develop a trade model with several industries employing local factors. We then investigate the structure of trade and industries as well as the possibilities of catastrophic changes and endogenous asymmetries in industry distribution. Three configurations are studied: multiple industries with local factor advantages at small trade costs, single industry with local factor advantage and two industries with comparative advantages for any trade costs. The last setting synthesizes the traditional results of Chamberlin and Ricardo.

Keywords: dispersion; comparative advantage; industrial specialization (search for similar items in EconPapers)
JEL-codes: F12 R10 R13 (search for similar items in EconPapers)
Date: 2006-06
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:cor:louvco:2006055

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