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

Svetlana Demidova, Kala Krishna

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

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Year of publication:	March 2007
Authors:	Demidova, Svetlana
Other Persons:	Krishna, Kala (contributor)
Institutions:	National Bureau of Economic Research (contributor)
Publisher:	Cambridge, Mass : National Bureau of Economic Research
Subject:	Außenwirtschaftstheorie \| International economics \| Außenwirtschaftspolitik \| Foreign economic policy \| Intraindustrieller Handel \| Intra-industry trade \| Wohlfahrtsanalyse \| Welfare analysis \| Komparativer Vorteil \| Comparative advantage

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Extent:	1 Online-Ressource
Series:	NBER working paper series ; no. w12949
Type of publication:	Book / Working Paper
Language:	English
Notes:	Mode of access: World Wide Web System requirements: Adobe [Acrobat] Reader required for PDF files Hardcopy version available to institutional subscribers.
Other identifiers:	10.3386/w12949 [DOI]
Source:	ECONIS - Online Catalogue of the ZBW

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