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On Chamberlinian‐Ricardian Trade Patterns
Author(s) -
Kikuchi Toru,
Shimomura Koji,
Zeng DaoZhi
Publication year - 2008
Publication title -
review of international economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.513
H-Index - 58
eISSN - 1467-9396
pISSN - 0965-7576
DOI - 10.1111/j.1467-9396.2007.00712.x
Subject(s) - monopolistic competition , economics , intra industry trade , competition (biology) , simple (philosophy) , index (typography) , schedule , international trade , economic geography , international economics , microeconomics , trade barrier , monopoly , ecology , computer science , biology , philosophy , management , epistemology , world wide web
This study provides a simple, many‐industry model of trade which emphasizes the interaction between cross‐country technical heterogeneity (i.e., a Ricardian aspect) and monopolistic competition among producers of differentiated products (i.e., a Chamberlinian aspect) as determinants of trade patterns. It is shown that the emergence of intra‐industry trade is crucially dependent on the shape of the technology index schedule, which is obtained as a step‐function.