Trade and Trade Policy with Differentiated Products: A Chamberlinian-Ricardian Model: A Comment

This paper shows that the results of Venables (1987) depend critically on the assumption that there are no fixed costs of trade. The introduction of fixed costs of exporting, while making the model more consistent with the empirical evidence, leads to the opposite conclusion that technological progress in one country cannot harm the welfare of its trading partner. However, the results can be obtained in a richer setting with heterogeneous firms.

MoreLess

Year of publication:	2007-03
Authors:	Krishna, Kala ; Demidova, Svetlana
Institutions:	National Bureau of Economic Research (NBER)

Online Resource

Check full text access |

More access options

Check Google Scholar

In German libraries (KVK)

I need help

More details

Extent:	application/pdf
Series:	NBER Working Papers.
Type of publication:	Book / Working Paper
Notes:	ITI published as Svetlana Demidova & Kala Krishna, 2007. "Trade and trade policy with differentiated products: A Chamberlinian - Ricardian model. A comment," Journal of International Trade & Economic Development, Taylor and Francis Journals, vol. 16(3), pages 435-441. Number 12949
Classification:	F1 - Trade
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005050056