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A Ricardian Model of International Trade with Oligopolistic Competition

Zhou, Haiwen (2018): A Ricardian Model of International Trade with Oligopolistic Competition. Published in: Journal of International Trade and Economic Development , Vol. 19, No. 4 (2010): pp. 499-515.

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Abstract

This paper studies a Ricardian model of international trade with a continuum of products in a general equilibrium model in which firms engage in oligopolistic competition. It provides a bridge between trade models based on perfect competition and models based on imperfect competition. Compared with a model based on perfect competition, the incorporation of fixed cost leads to the result that an increase of domestic labor may increase the relative wage of the domestic country.

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