Huang, Deng-Shing; Huang, Yo-Yi; Lee, Cheng-Te - Institute of Economics, Academia Sinica - 2006
According to conventional home market effects, free trade tends to shrink the market share for the smaller economy in the differentiated manufacturing goods, and in the extreme, leads to a complete hollowing out of the industry. In departing from the original Helpman-Krugman modeling assumptions...