Developing Countries in Light of Intra-Trade

Udo Broll and Bernard Gilroy

MPRA Paper from University Library of Munich, Germany

Abstract: This paper examines one possible explanation for intra-trade flows derived in light of an international environment characterized by product differentiation, economies of scale, and monopolistic competition. The analysis may be structured within a more general formulated Heckscher-Ohlin framework, in which intra-trade flows may be explained through product differentiation while conventional explanations apply to inter-industry trade (see e.g. Helpman (1981), (1984), Kierzkowski (1984)). The model analyses the relationship between the total volume of trade, the share of intra-trade on cross-country differences in relative factor endowments and relative country size in a simple integrated two country world.

Keywords: Developing countries; trade; intra-trade flows; cross-country analysis (search for similar items in EconPapers)
JEL-codes: F1 P33 (search for similar items in EconPapers)
Date: 1985-12
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Citations: View citations in EconPapers (4)

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