This paper examines if international trade can reduce total welfare in an international oligopoly with differentiated … goods. We show that welfare is a U-shaped function in the transport cost as long as trade occurs in equilibrium. With a … Cournot duopoly trade can reduce welfare compared to autarchy for any degree of product differentiation. Under Bertrand …

This paper examines if international trade can reduce total welfare in an international oligopoly with differentiated … goods. We show that welfare is a U-shaped function in the transport cost as long as trade occurs in equilibrium. With a … Cournot duopoly trade can reduce welfare compared to autarchy for any degree of product differentiation. Under Bertrand …

It has become common to measure the quality of exports using their unit export value (UEV). Applications of this method … include studies of intra-industry trade (IIT) and analyses of industrial "competitiveness". This literature seems to assume … that export quality and export price (the most natural interpretation of UEV) are not merely correlated but that they …

During the last decades, international trade flows especially of the industrialized countries allegedly became more and … these countries. This phenomenon is often traced back to the fact that intra-industry trade, which should theoretically …. Against this background, the present paper investigates the relationship between international trade patterns and selected …

Starting with Krugman (1980), much literature has analyzed how trade liberalization affects the economy based on the … notion that trade is motivated by consumer's love of variety. In this paper, I augment these preferences by the determinants … heterogeneous tastes for attributes. Allowing for international trade, the model predicts a within-industry home market effect, i …

product attribute dimension that significantly drive net trade patterns and reduce the volume of trade. Further it is shown … trade volume to liberalization as it took time for each country's industry structure to adapt to the demand structure of the … common market. To rationalize such trade patterns, a structural model of demand featuring consumers with homothetic …

This paper presents a model of international trade that features heterogeneous firms, relative endowment differences … across countries, and consumer taste for variety. The paper demonstrates that firm reactions to trade liberalization generate … wide range of firm-level reactions to falling trade costs, the model also shows that, as trade costs fall, firms in …

The new trade theory explains several features of the current development of EU's trade with CEECs better than the … Heckscher-Ohlin model. In 1997, CEECs participated in the European economy with levels of intraindustry trade comparable to … the previous decades. The development of intraindustry trade is positively related to the growth of wages and negatively …

We examine an export game where two firms (home and foreign), located in two different countries, produce vertically … intra-industry trade where the foreign producer manufactures a good of higher quality than the domestic firm. This …