Dixit and Stiglitz (1977) with applications in international trade by Krugman (1979,1980), by modeling fixed and variable … pattern of trade between varieties and output per variety, which is indeterminate in a standard single good Dixit …

Dixit and Stiglitz (1977) with applications in international trade by Krugman (1979,1980), by modeling fixed and variable … pattern of trade between varieties and output per variety, which is indeterminate in a standard single good Dixit …

This paper introduces finance or credit in the Dixit-Stiglitz-Krugman (DSK) model of international trade. It identifies … output per variety. Thus, availability of finance will determine a specific trade pattern between richer and poorer nations … indeterminate pattern of trade. …