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Nobuhito Suga
''Reconsideration of trade patterns in a Chamberlinian-Ricardian model''
( 2005, Vol. 6 No.8 )
This paper reexamines the patterns of trade in a Chamberlinian-Ricardian model by introducing a simple dynamic process of labor reallocation. Our analysis shows the following results. First, the patterns of inter-industry trade are determined by technical differences among countries. Second, whether intra-industry trade emerges depends not only on the cross-country technical heterogeneity but also on the size of a country and the expenditure share for differentiated products. Our main finding is that intra-industry trade can emerge in the trading equilibrium even if there is technical heterogeneity among countries.
JEL: F1 - Trade: General
F1 - Trade: General
Manuscript Received : Apr 13 2005 Manuscript Accepted : Jun 13 2005

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