Bekkers, Eddy; Stehrer, Robert - Institut für Volkswirtschaftslehre, … - 2011
from trade. A model is proposed with Melitz type firm heterogeneity with two sectors, two countries and two fixed factors … welfare gains from trade liberalization are larger in countries with a lower substitution elasticity. Furthermore, it is shown … that the immobile production factor in the comparative disadvantage sector can still gain from trade liberalization due to …