Gao, Xiang (2009): Macroeconomic Analysis on the Basis of Trade Theory: A Review Essay.
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This paper reviews the branch of literature that applies models developed in international trade theory (Microeconomics) to explain phenomena found in international finance (Macroeconomics). Among all international trade models, the New New Trade Theory with productivity heterogeneity across firms in the same industry has proved to be a powerful tool to bridge the gap between international trade and finance. As a result, this review focuses on several papers in this nascent field, where the behavior of macroeconomic indicators are generated from sound microeconomic foundation.
|Item Type:||MPRA Paper|
|Original Title:||Macroeconomic Analysis on the Basis of Trade Theory: A Review Essay|
|English Title:||Macroeconomic Analysis on the Basis of Trade Theory: A Review Essay|
|Keywords:||Heterogeneous firm; Price fluctuation; Innovation|
|Subjects:||E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E31 - Price Level; Inflation; Deflation
F - International Economics > F1 - Trade > F12 - Models of Trade with Imperfect Competition and Scale Economies
O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development; Intellectual Property Rights > O31 - Innovation and Invention: Processes and Incentives
|Depositing User:||XIANG GAO|
|Date Deposited:||05. Nov 2009 16:04|
|Last Modified:||14. Feb 2013 15:21|
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