Munich Personal RePEc Archive

Developing Countries in Light of Intra-Trade

Broll, Udo and Gilroy, Bernard Michael (1985): Developing Countries in Light of Intra-Trade.

[img]
Preview
PDF
MPRA_paper_18046.pdf

Download (961kB) | Preview

Abstract

This paper examines one possible explanation for intra-trade flows derived in light of an international environment characterized by product differentiation, economies of scale, and monopolistic competition. The analysis may be structured within a more general formulated Heckscher-Ohlin framework, in which intra-trade flows may be explained through product differentiation while conventional explanations apply to inter-industry trade (see e.g. Helpman (1981), (1984), Kierzkowski (1984)). The model analyses the relationship between the total volume of trade, the share of intra-trade on cross-country differences in relative factor endowments and relative country size in a simple integrated two country world.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.