ISBN:
0444704353
Content:
The monopolistic competition model of trade began with an empirical observation. The most influential of trade models is the HeckscherOhlinSamuelson model, which tells that trade reflects an interaction between the characteristics of countries and the characteristics of the production technology of different goods. Specifically, countries will export goods whose production is intensive in the factors with which they are abundantly endowedfor example, countries with a high capitallabor ratio will export capitalintensive goods. The monopolistic competition model has had a major impact on research into international trade. By showing that increasing returns and imperfect competition can make a fundamental difference to the way people think about trade, this approach has been crucial in making work that applies industrial organization (IO) concepts to trade respectable. In effect, the monopolistic competition model has been the thin end of the IO/trade wedge.
In:
Handbook of industrial organization, Amsterdam : North-Holland, 1989, (1989), Seite 1179-1223, 0444704353
In:
9780444704351
In:
year:1989
In:
pages:1179-1223
Language:
English
DOI:
10.1016/S1573-448X(89)02008-X
URL:
Volltext
(Deutschlandweit zugänglich)
