TY - JOUR
T1 - International trade in the presence of product differentiation, economies of scale and monopolistic competition. A Chamberlin-Heckscher-Ohlin approach
AU - Helpman, Elhanan
N1 - Funding Information:
*This is a revised version of Seminar Paper No. 157, The Institute for InternationaI Economic Studies, University of Stockholm. I am grateful to Eitan Rerglas, Ronald Jones and Assaf Razin for helpful comments and discussions. Eitan Bergias was particularly helpful in the formulation of proposition 4 while Ronald Jones was p;irticularly helpful with parts of section 6. An earlier version of this paper was presented at the I’)80 Warwick Summer Workshop, as well as at the Workshop on Production and Trade in a World of Internationally Mobile Factor of Production financed by the Bank of Sweden Tercentenary Foundation, and held at the Institute for International Economic Studies, University of Stockholm. I am grateful to participants of thcsc workshops for helpful discussions.
PY - 1981/8
Y1 - 1981/8
N2 - The paper presents a generalization of the Heckscher-Ohlin theory by admitting the existence of sectors in which there is monopolistic competition. The structure of preferences is based on Lancaster's work. It is shown without requiring homotheticity in the production of differentiated products that the intersectoral pattern of trade can be predicted from factor endowments but not from pre-trade commodity prices or factor rewards, except under special circumstances. It is also shown how the share of intra-industry trade is related to differences in income per capita and how the volume of trade depends on differences in income per capita and relative country-size Other empirical implications are also discussed.
AB - The paper presents a generalization of the Heckscher-Ohlin theory by admitting the existence of sectors in which there is monopolistic competition. The structure of preferences is based on Lancaster's work. It is shown without requiring homotheticity in the production of differentiated products that the intersectoral pattern of trade can be predicted from factor endowments but not from pre-trade commodity prices or factor rewards, except under special circumstances. It is also shown how the share of intra-industry trade is related to differences in income per capita and how the volume of trade depends on differences in income per capita and relative country-size Other empirical implications are also discussed.
UR - http://www.scopus.com/inward/record.url?scp=49049152664&partnerID=8YFLogxK
U2 - 10.1016/0022-1996(81)90001-5
DO - 10.1016/0022-1996(81)90001-5
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AN - SCOPUS:49049152664
SN - 0022-1996
VL - 11
SP - 305
EP - 340
JO - Journal of International Economics
JF - Journal of International Economics
IS - 3
ER -
