Economic Integration in a Chamberlinian-Ricardian World

Toru Kikuchi

EERI Research Paper Series from Economics and Econometrics Research Institute (EERI), Brussels

Abstract: Based on a many-industry Chamberlinian-Ricardian trade model with iceberg trade costs, this note examines the impact of two modes of economic integration: a reduction in trade costs, and technical standardization due to information spillover. It is shown that these two modes of economic integration have opposing effects on specialization patterns: while trade liberalization narrows the range of industries with intra-industry trade, technical standardization widens the same range.

Keywords: Monopolistic competition; Technical heterogeneity; Trade costs; Economic integration. (search for similar items in EconPapers)
JEL-codes: D43 F12 (search for similar items in EconPapers)
Pages: 13 pages
Date: 2008-10-20
New Economics Papers: this item is included in nep-int
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Persistent link: https://EconPapers.repec.org/RePEc:eei:rpaper:eeri_rp_2008_07

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