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...

A two-part model is estimated to see if increasing returns and comparative advantage are empirically equivalent in explaining intra-industry trade. The model has separate mechanisms for determining the occurrence and the extent of intra-industry trade. Estimation is based on an augmented...

This paper explores the trade structure of three countries India, Sri Lanka and Bangladesh. First, the study revealed that the export structures are becoming similar. Second, the study revealed that export structures of these three countries (India, Sri Lanka and Bangladesh) are becoming similar...

The aim of this paper is to identify the sectors in which the Republic of Macedonia has a comparative advantage in export to the other member states of CEFTA 2006 (Central European Free Trade Agreement). The revealed comparative advantage of the Republic of Macedonia (RM) in relation to other...