← Search

Product Diversity, Economies of Scale, and International Trade

Colin Lawrence^1,2; Pablo T. Spiller^1,2

¹ University of Pennsylvania · ² Graduate School USA

The paper develops new testable implications for monopolistic competition in the open economy. Within a two-sector model we explore how international trade affects plant size, the degree of product diversity, and excess capacity. The analysis then focuses on how trade affects the degree of domestic and international concentration, intersectoral capital mobility, and output in the competitive sector. Finally, we compare the model to the traditional Hecksher-Ohlin model and find that many of the central propositions still hold.

DOI

10.2307/1885567

Volume

98 (1)

Pages

63

Export

BibTeX

Sources

openalex crossref