Using a model of monopolistic competition with traded and non-traded goods, this paper establishes a positive link between scale economies, the volume of intra-industry trade and the share of trade in total production. These results are consistent with empirical findings. (C) 2001 Elsevier Science B.V. All rights reserved.
机构:
Inst Developing Econ, Interdisciplinary Studies Ctr, Mihama Ku, 3-2-2 Wakaba, Chiba, Chiba 2618545, JapanInst Developing Econ, Interdisciplinary Studies Ctr, Mihama Ku, 3-2-2 Wakaba, Chiba, Chiba 2618545, Japan
Hayakawa, Kazunobu
Ito, Tadashi
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机构:
Gakushuin Univ, Fac Int Social Sci, Tokyo, JapanInst Developing Econ, Interdisciplinary Studies Ctr, Mihama Ku, 3-2-2 Wakaba, Chiba, Chiba 2618545, Japan