Studying intra-industry trade involves theoretical explanations and empirical methods to measure the phenomenon. Indicators have been developed to measure the intensity of intra-industry trade, leading to theoretical models explaining its determinants. It is essential to distinguish between...

We study the gains from trade in a model with endogenously variable markups. We show that the pro-competitive gains from trade are large if the economy is characterized by (i) extensive misallocation, i.e., large inefficiencies associated with markups, and (ii) a weak pattern of cross-country...

We study the gains from trade in a model with endogenously variable markups. We show that the pro-competitive gains from trade are large if the economy is characterized by (i) extensive misallocation, i.e., large inefficiencies associated with markups, and (ii) a weak pattern of cross-country...

This paper examines the empirical relationships between trade structure and economic growth, particularly the influence of natural resource abundance, export concentration and intra-industry trade. We test the robustness of these relationships across proxies, control variables, and estimation...

This paper develops a theory of total factor productivity differences in a framework of technology diffusion. I show how in countries with tighter borrowing constraints, frontier technologies diffuse more slowly, and old outdated technologies continue to be used. I analyse how countries with...

The paper provides an explanation of the mechanisms underlying trade roots of the contagion effects emanating from the recent turmoils. It is argued that under demand uncertainty risk averse behavior of firms provides a basis for international trade. The paper shows by means of a simple...

Contrary to predictions from traditional comparative advantage analysis, a class of models with imperfect competition predicts intraindustry trade in homogeneous goods. Brander and Krugman offer a model with two countries and one firm in each country which generates the outcome that both firms...

This paper empirically investigates one aspect of the vertically differentiated models of intraindustry trade. These models predict that the pattern of trade within an industry is based on comparative advantage rather than being completely random. An empirical model is specified in which the...

A recent theoretical literature has emphasized the importance of multiproduct firms in trade. However, models within this literature have reached contradictory conclusions regarding the product-level response of firms to changes in trade costs. This paper attempts to resolve these contradictions...

This paper develops a framework for studying the general equilibrium effects of endogenous quality upgrading, a new margin of trade, on the welfare impact of trade liberalization. Unlike Fajgelbaum et al. (2011) which studies the effect of non homothetic preferences on output quality and...