Recent trade theory in the Krugman (1980) tradition predicts that countries with larger market size enjoy higher levels … spending on inputs is affected by trade costs. However, in cross-country data, there is no such positive correlation between … is implicitly assumed in the usual formulation of aggregate CES production functions. Whether trade liberalization …

benefits of trade. We assert that this emphasize leads to erroneous student mindset that trade requires specialization based on … and trade with real but paradoxical situations where the same goods are both imported and exported by a country. Students … trade situation for which specialization is not relevant. …

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 attempts to build up a Heckscher-Ohlin-Samuelson model of production and trade where capital is introduced … trade only nominal factor prices. International financial flows will not alter pattern of trade, but movement of labour and … much more than before. Introducing finance affects trade patterns with unemployment and especially with imperfect credit …

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. …

critical contemporary issues without the ammunitions of a more complex neo-classical system. Trade pampers inequality all … across the globe independent of trade patterns. It is likely to increase growth rate but that rate declines over time …

We develop a dynamic multi-country trade model with foreign direct investment (FDI) in the form of non-rival technology … capital. The model nests structural gravity subsystems for FDI and trade, with accumulation/decumulation of phyisical and … to 9% of world's welfare and to 11% of world's trade, unevenly distributed among winners and losers. Net exports of FDI …

theory characterizes how innovation and learning determine technology gaps, trade and global income inequality. Countries … innovation-dependence by industry from R&D and bilateral trade data. Calibrating the model implies technology gaps, due to cross …

Trade and innovation cause structural change. Productive factors must flow from declining to growing industries. Banks … advantage and trade, and can magnify the gains from trade liberalization. The analysis shows how insolvency laws, minimum … capital standards, and cost of bank equity determine credit reallocation, sectoral expansion and trade patterns. …

We extend structural gravity models of bilateral trade flows to oligopolistic competition. We show that conventional … gravity estimates do not only reflect trade costs but also market power. Our simple estimation procedure generalizes the … standard gravity model and disentangles exogenous trade frictions and endogenous market power distortions. We use our estimated …