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Pro-competitive effects and harmful trade liberalization in multi-country world

Igor Bykadorov (), Andrea Ellero (), Stefania Funari (), Sergey Kokovin and Pavel Molchanov ()
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Pavel Molchanov: MSSE NRU Higher School of Economics

No 6, Working Papers from Department of Management, Università Ca' Foscari Venezia

Abstract: We study a multi-country trade model with two types of countries (big and small ones). The model generalizes the case of two countries analyzed in [3] and wonder whether there could be harm from trade. Monopolistic competition, iceberg type trade costs and variable elasticity of substitution (VES) are among the model assumptions. The effects of trade liberalization on price, production and welfare are analyzed, in cases of free trade and autarky.

Keywords: Monopolistic competition trade model; variable elasticity of substitution; iceberg type trade costs; free trade; autarky. (search for similar items in EconPapers)
JEL-codes: D43 F12 L13 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2015-08
New Economics Papers: this item is included in nep-int
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http://virgo.unive.it/wpideas/storage/2015wp06.pdf First version, 2015 (application/pdf)

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