Developing Countries in Light of Intra-Trade

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

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.

• Item Type: MPRA Paper
• Language: English
• Keywords: Developing countries; trade; intra-trade flows; cross-country analysis
• Subjects: P - Economic Systems > P3 - Socialist Institutions and Their Transitions > P33 - International Trade, Finance, Investment, Relations, and Aid; F - International Economics > F1 - Trade

References

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