Trade and trade policy with differentiated products: A Chamberlinian-Ricardian model. A comment

Svetlana Demidova, Kala Krishna

Research output: Contribution to journalArticle

2 Scopus citations

Abstract

This paper shows that the results of Venables (1987) depend critically on the assumption that there are no fixed costs of trade. The introduction of fixed costs of exporting, while making the model more consistent with the empirical evidence, leads to the opposite conclusion that technological progress in one country cannot harm the welfare of its trading partner. However, the results can be obtained in a richer setting with heterogeneous firms.

Original languageEnglish (US)
Pages (from-to)435-441
Number of pages7
JournalJournal of International Trade and Economic Development
Volume16
Issue number3
DOIs
StatePublished - Sep 1 2007

All Science Journal Classification (ASJC) codes

  • Geography, Planning and Development
  • Development
  • Aerospace Engineering

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