A Ricardian Model of International Trade with Oligopolistic Competition
Haiwen Zhou
MPRA Paper from University Library of Munich, Germany
Abstract:
This paper studies a Ricardian model of international trade with a continuum of products in a general equilibrium model in which firms engage in oligopolistic competition. It provides a bridge between trade models based on perfect competition and models based on imperfect competition. Compared with a model based on perfect competition, the incorporation of fixed cost leads to the result that an increase of domestic labor may increase the relative wage of the domestic country.
Keywords: Comparative advantage; Ricardian model; oligopolistic competition; increasing returns to scale; trade policy (search for similar items in EconPapers)
JEL-codes: F10 (search for similar items in EconPapers)
Date: 2018-10-08
New Economics Papers: this item is included in nep-int
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Citations: View citations in EconPapers (1)
Published in Journal of International Trade and Economic Development 4.19(2010): pp. 499-515
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:89406
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