Comparative Advantage and Trade Liberalization in a Chamberlinian-Ricardian Model

Toru Kikuchi and Koji Shimomua

MPRA Paper from University Library of Munich, Germany

Abstract: The present note shows the interaction between technological differences between countries and the level of trade costs as a determinant of trade patterns. It takes the work of Kikuchi et al.(2008)'s Chamberlinian-Ricardian model as its point of departure, and extends the analysis to include both a continuum of industries, as did Dornbusch et al. (1977), and iceberg transport costs. It will be shown that trade liberalization drastically changes the nature of trade patterns, particularly the emergence of intra-industry trade.

JEL-codes: F12 (search for similar items in EconPapers)
Date: 2008
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