Conventional trade theory, which combines the Heckscher-Ohlin theory and the Stolper-Samuelson theorem, implies that … expanded trade between developed and developing countries will increase wage inequality in the developed countries. This theory … conventional theory to the assumption of incomplete specialization and find evidence that is not consistent with it. Since 1987 …

-trust) policy and international trade. While recent advances in international trade theory have borrowed heavily from the industrial … organization literature, this work has a schizophrenic quality to it. One of the insights that motivated the new trade theory was … competition between firms. While trade theorists have borrowed heavily from the theory of industrial organization, they seem to …

industries to which the hypothesis is relevant, markups change in the direction predicted by the theory. These changes are …

The primary predictions of strategic-trade theory are not restricted to imperfectly-competitive markets. Indeed, these … predictions emerge in a natural three-country extension of the traditional theory of trade policy in competitive markets, once the … theory is augmented to allow for politically-motivated governments, so that the sign of export policy may be converted from …