In this paper, we merge the heterogenous firm trade model of Melitz (2003) with the Ricardian model of Dornbusch, Fisher and Samuelson (DFS 1977) to explain how the pattern of international specialization and trade is determined by the interaction of comparative advantage, economies of scale,...

Evolving of trade specialization is usually a longlasting process resulting from deep structural changes of an economy. In some cases external stimuli such as broader market that resulted from trade liberalization could contribute to a rapid changing of a country's trade pattern. Although trade...

This study investigates Pakistan's trading competitiveness over her trading partners using Revealed Comparative Advantage (RCA) Index, proposed by Balassa (1965). The study aims to determine competitive position of Pakistan vis-à-vis to eight Asian economies and nine European economies in some...